SATS Bull Call Spread Strategy
SATS (EchoStar Corporation), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
EchoStar Corporation, together with its subsidiaries, provides networking technologies and services worldwide. The company operates in two segments, Hughes and EchoStar Satellite Services (ESS). The Hughes segment offers broadband network technologies, managed services, equipment, hardware, satellite services, and communications solutions to government and enterprise customers. The segment also designs, provides, and installs gateway and terminal equipment to customers for other satellite systems. In addition, it designs, develops, constructs, and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and enterprise customers. Further, this segment designs, provides, and installs gateway and terminal equipment to customers for other satellite systems, as well as offers satellite ground segment systems and terminals for other satellite systems, including mobile system operators.
SATS (EchoStar Corporation) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $38.40B, a beta of 0.96 versus the broader market, a 52-week range of 14.9-137.47, average daily share volume of 6.0M, a public-listing history dating back to 2008, approximately 14K full-time employees. These structural characteristics shape how SATS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places SATS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bull call spread on SATS?
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 SATS snapshot
As of May 15, 2026, spot at $137.21, ATM IV 71.77%, IV rank 17.14%, expected move 20.58%. The bull call spread on SATS 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 28-day expiry.
Why this bull call spread structure on SATS specifically: SATS IV at 71.77% is on the cheap side of its 1-year range, which favors premium-buying structures like a SATS bull call spread, with a market-implied 1-standard-deviation move of approximately 20.58% (roughly $28.23 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SATS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SATS should anchor to the underlying notional of $137.21 per share and to the trader's directional view on SATS stock.
SATS bull call spread setup
The SATS 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 SATS near $137.21, the first option leg uses a $137.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SATS chain at a 28-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 SATS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $137.00 | $11.25 |
| Sell 1 | Call | $144.00 | $8.30 |
SATS bull call spread risk and reward
- Net Premium / Debit
- -$295.00
- Max Profit (per contract)
- $405.00
- Max Loss (per contract)
- -$295.00
- Breakeven(s)
- $139.95
- Risk / Reward Ratio
- 1.373
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.
SATS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on SATS. 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 | -100.0% | -$295.00 |
| $30.35 | -77.9% | -$295.00 |
| $60.68 | -55.8% | -$295.00 |
| $91.02 | -33.7% | -$295.00 |
| $121.36 | -11.6% | -$295.00 |
| $151.69 | +10.6% | +$405.00 |
| $182.03 | +32.7% | +$405.00 |
| $212.37 | +54.8% | +$405.00 |
| $242.70 | +76.9% | +$405.00 |
| $273.04 | +99.0% | +$405.00 |
When traders use bull call spread on SATS
Bull call spreads on SATS reduce the cost of a bullish SATS stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
SATS thesis for this bull call spread
The market-implied 1-standard-deviation range for SATS extends from approximately $108.98 on the downside to $165.44 on the upside. A SATS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on SATS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SATS IV rank near 17.14% 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 SATS at 71.77%. As a Technology name, SATS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SATS-specific events.
SATS 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. SATS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SATS alongside the broader basket even when SATS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on SATS 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 SATS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on SATS?
- A bull call spread on SATS is the bull call spread strategy applied to SATS (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 SATS stock trading near $137.21, the strikes shown on this page are snapped to the nearest listed SATS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SATS 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 SATS bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 71.77%), the computed maximum profit is $405.00 per contract and the computed maximum loss is -$295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SATS bull call spread?
- The breakeven for the SATS bull call spread priced on this page is roughly $139.95 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 SATS market-implied 1-standard-deviation expected move is approximately 20.58%; 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 SATS?
- Bull call spreads on SATS reduce the cost of a bullish SATS 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 SATS implied volatility affect this bull call spread?
- SATS ATM IV is at 71.77% with IV rank near 17.14%, 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.