SRCE Long Call Strategy
SRCE (1st Source Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services.
SRCE (1st Source Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.72B, a trailing P/E of 10.81, a beta of 0.59 versus the broader market, a 52-week range of 56.89-76.44, average daily share volume of 145K, a public-listing history dating back to 1983, approximately 1K full-time employees. These structural characteristics shape how SRCE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates SRCE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.81 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SRCE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on SRCE?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current SRCE snapshot
As of May 15, 2026, spot at $71.22, ATM IV 29.20%, IV rank 3.75%, expected move 8.37%. The long call on SRCE 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 long call structure on SRCE specifically: SRCE IV at 29.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SRCE long call, with a market-implied 1-standard-deviation move of approximately 8.37% (roughly $5.96 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 SRCE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SRCE should anchor to the underlying notional of $71.22 per share and to the trader's directional view on SRCE stock.
SRCE long call setup
The SRCE long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SRCE near $71.22, the first option leg uses a $71.22 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SRCE 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 SRCE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $71.22 | N/A |
SRCE long call 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 is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
SRCE long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on SRCE. 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 long call on SRCE
Long calls on SRCE express a bullish thesis with defined risk; traders use them ahead of SRCE catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
SRCE thesis for this long call
The market-implied 1-standard-deviation range for SRCE extends from approximately $65.26 on the downside to $77.18 on the upside. A SRCE long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current SRCE IV rank near 3.75% 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 SRCE at 29.20%. As a Financial Services name, SRCE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SRCE-specific events.
SRCE long call positions are structurally 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. SRCE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SRCE alongside the broader basket even when SRCE-specific fundamentals are unchanged. Long-premium structures like a long call on SRCE 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 SRCE chain quotes before placing a trade.
Frequently asked questions
- What is a long call on SRCE?
- A long call on SRCE is the long call strategy applied to SRCE (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With SRCE stock trading near $71.22, the strikes shown on this page are snapped to the nearest listed SRCE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SRCE long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the SRCE long call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), 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 SRCE long call?
- The breakeven for the SRCE long call 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 SRCE market-implied 1-standard-deviation expected move is approximately 8.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on SRCE?
- Long calls on SRCE express a bullish thesis with defined risk; traders use them ahead of SRCE catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current SRCE implied volatility affect this long call?
- SRCE ATM IV is at 29.20% with IV rank near 3.75%, 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.