SGMO Bull Call Spread Strategy

SGMO (Sangamo Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Sangamo Therapeutics, Inc., a clinical-stage biotechnology company, focuses on translating science into genomic medicines that transform patients' lives using platform technologies in gene therapy, cell therapy, genome editing, and genome regulation. The company offers zinc finger protein (ZFP), a technology platform for making zinc finger nucleases, which are proteins used in modifying DNA sequences by adding or knocking out specific genes; and ZFP transcription factors proteins used in increasing or decreasing gene expression. It develops SB-525, which is in Phase III AFFINE clinical trial for the treatment of hemophilia A; ST-920, a gene therapy, which is in Phase I/II STAAR clinical trials for the treatment of Fabry disease; and SAR445136, a cell therapy, which is in Phase I/II PRECIZN-1 clinical trials for the treatment of sickle cell disease. The company also develops TX200, chimeric antigen receptor for the treatment of HLA-A2 mismatched kidney transplant rejection; KITE-037, a cell therapy for the treatment of cancer; ST-501 for the treatment of tauopathies; and ST-502 for the treatment of synucleinopathies, including Parkinson's disease and neuromuscular disease. It has collaborative and strategic partnerships with Biogen MA, Inc.; Kite Pharma, Inc.; Pfizer Inc.; Sanofi S.A.; Novartis Institutes for BioMedical Research, Inc.; Shire International GmbH; Dow AgroSciences LLC; Sigma-Aldrich Corporation; Genentech, Inc.; Open Monoclonal Technology, Inc.; F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc.; and California Institute for Regenerative Medicine.

SGMO (Sangamo Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $58.4M, a beta of 1.04 versus the broader market, a 52-week range of 0.1-0.77, average daily share volume of 10.5M, a public-listing history dating back to 2000, approximately 183 full-time employees. These structural characteristics shape how SGMO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places SGMO 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 SGMO?

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 SGMO snapshot

As of May 15, 2026, spot at $1.50, ATM IV 21.50%, IV rank 1.44%, expected move 6.16%. The bull call spread on SGMO 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 SGMO specifically: SGMO IV at 21.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a SGMO bull call spread, with a market-implied 1-standard-deviation move of approximately 6.16% (roughly $0.09 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 SGMO expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGMO should anchor to the underlying notional of $1.50 per share and to the trader's directional view on SGMO stock.

SGMO bull call spread setup

The SGMO 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 SGMO near $1.50, the first option leg uses a $1.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGMO 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 SGMO shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$1.50N/A
Sell 1Call$1.58N/A

SGMO bull call spread risk and reward

Net Premium / Debit
N/A
Max Profit (per contract)
Unbounded
Max Loss (per contract)
Unbounded
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.

SGMO bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on SGMO. 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.

When traders use bull call spread on SGMO

Bull call spreads on SGMO reduce the cost of a bullish SGMO stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.

SGMO thesis for this bull call spread

The market-implied 1-standard-deviation range for SGMO extends from approximately $1.41 on the downside to $1.59 on the upside. A SGMO bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on SGMO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SGMO IV rank near 1.44% 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 SGMO at 21.50%. As a Healthcare name, SGMO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGMO-specific events.

SGMO 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. SGMO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGMO alongside the broader basket even when SGMO-specific fundamentals are unchanged. Long-premium structures like a bull call spread on SGMO 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 SGMO chain quotes before placing a trade.

Frequently asked questions

What is a bull call spread on SGMO?
A bull call spread on SGMO is the bull call spread strategy applied to SGMO (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 SGMO stock trading near $1.50, the strikes shown on this page are snapped to the nearest listed SGMO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SGMO 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 SGMO bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SGMO bull call spread?
The breakeven for the SGMO 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 SGMO market-implied 1-standard-deviation expected move is approximately 6.16%; 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 SGMO?
Bull call spreads on SGMO reduce the cost of a bullish SGMO 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 SGMO implied volatility affect this bull call spread?
SGMO ATM IV is at 21.50% with IV rank near 1.44%, 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.

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