SWIM Bull Call Spread Strategy
SWIM (Latham Group, Inc.), in the Industrials sector, (Construction industry), listed on NASDAQ.
Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools, pool covers, and pool liners. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was incorporated in 2018 and is headquartered in Latham, New York.
SWIM (Latham Group, Inc.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $563.6M, a trailing P/E of 65.61, a beta of 1.72 versus the broader market, a 52-week range of 4.64-8.966, average daily share volume of 1.0M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how SWIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates SWIM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 65.61 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a bull call spread on SWIM?
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 SWIM snapshot
As of May 15, 2026, spot at $4.70, ATM IV 71.20%, IV rank 11.84%, expected move 20.41%. The bull call spread on SWIM 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 SWIM specifically: SWIM IV at 71.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SWIM bull call spread, with a market-implied 1-standard-deviation move of approximately 20.41% (roughly $0.96 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 SWIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SWIM should anchor to the underlying notional of $4.70 per share and to the trader's directional view on SWIM stock.
SWIM bull call spread setup
The SWIM 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 SWIM near $4.70, the first option leg uses a $4.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SWIM 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 SWIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $4.70 | N/A |
| Sell 1 | Call | $4.94 | N/A |
SWIM 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.
SWIM bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on SWIM. 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 SWIM
Bull call spreads on SWIM reduce the cost of a bullish SWIM stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
SWIM thesis for this bull call spread
The market-implied 1-standard-deviation range for SWIM extends from approximately $3.74 on the downside to $5.66 on the upside. A SWIM bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on SWIM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SWIM IV rank near 11.84% 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 SWIM at 71.20%. As a Industrials name, SWIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SWIM-specific events.
SWIM 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. SWIM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SWIM alongside the broader basket even when SWIM-specific fundamentals are unchanged. Long-premium structures like a bull call spread on SWIM 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 SWIM chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on SWIM?
- A bull call spread on SWIM is the bull call spread strategy applied to SWIM (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 SWIM stock trading near $4.70, the strikes shown on this page are snapped to the nearest listed SWIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SWIM 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 SWIM bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 71.20%), 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 SWIM bull call spread?
- The breakeven for the SWIM 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 SWIM market-implied 1-standard-deviation expected move is approximately 20.41%; 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 SWIM?
- Bull call spreads on SWIM reduce the cost of a bullish SWIM 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 SWIM implied volatility affect this bull call spread?
- SWIM ATM IV is at 71.20% with IV rank near 11.84%, 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.