RLAY Bull Call Spread Strategy
RLAY (Relay Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. It has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D.
RLAY (Relay Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.53B, a beta of 1.75 versus the broader market, a 52-week range of 2.67-17.32, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 259 full-time employees. These structural characteristics shape how RLAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.75 indicates RLAY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bull call spread on RLAY?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
Current RLAY snapshot
As of May 15, 2026, spot at $12.54, ATM IV 113.30%, IV rank 18.35%, expected move 32.48%. The bull call spread on RLAY below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this bull call spread structure on RLAY specifically: RLAY IV at 113.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a RLAY bull call spread, with a market-implied 1-standard-deviation move of approximately 32.48% (roughly $4.07 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RLAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RLAY should anchor to the underlying notional of $12.54 per share and to the trader's directional view on RLAY stock.
RLAY bull call spread setup
The RLAY bull call spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RLAY near $12.54, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RLAY chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 RLAY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $1.35 |
| Sell 1 | Call | $13.00 | $1.35 |
RLAY bull call spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
RLAY bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on RLAY. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | $0.00 |
| $2.78 | -77.8% | $0.00 |
| $5.55 | -55.7% | $0.00 |
| $8.32 | -33.6% | $0.00 |
| $11.10 | -11.5% | $0.00 |
| $13.87 | +10.6% | $0.00 |
| $16.64 | +32.7% | $0.00 |
| $19.41 | +54.8% | $0.00 |
| $22.18 | +76.9% | $0.00 |
| $24.95 | +99.0% | $0.00 |
When traders use bull call spread on RLAY
Bull call spreads on RLAY reduce the cost of a bullish RLAY stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
RLAY thesis for this bull call spread
The market-implied 1-standard-deviation range for RLAY extends from approximately $8.47 on the downside to $16.61 on the upside. A RLAY bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on RLAY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RLAY IV rank near 18.35% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on RLAY at 113.30%. As a Healthcare name, RLAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RLAY-specific events.
RLAY bull call spread positions are structurally moderately bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. RLAY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RLAY alongside the broader basket even when RLAY-specific fundamentals are unchanged. Long-premium structures like a bull call spread on RLAY are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current RLAY chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on RLAY?
- A bull call spread on RLAY is the bull call spread strategy applied to RLAY (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With RLAY stock trading near $12.54, the strikes shown on this page are snapped to the nearest listed RLAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RLAY bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the RLAY bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 113.30%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RLAY bull call spread?
- The breakeven for the RLAY bull call spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current RLAY market-implied 1-standard-deviation expected move is approximately 32.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on RLAY?
- Bull call spreads on RLAY reduce the cost of a bullish RLAY stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current RLAY implied volatility affect this bull call spread?
- RLAY ATM IV is at 113.30% with IV rank near 18.35%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.