TDY Bull Call Spread Strategy
TDY (Teledyne Technologies Incorporated), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally. The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications.
TDY (Teledyne Technologies Incorporated) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $29.46B, a trailing P/E of 31.90, a beta of 0.97 versus the broader market, a 52-week range of 483.02-693.38, average daily share volume of 319K, a public-listing history dating back to 1999, approximately 15K full-time employees. These structural characteristics shape how TDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places TDY 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 TDY?
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 TDY snapshot
As of May 15, 2026, spot at $616.85, ATM IV 27.10%, IV rank 49.09%, expected move 7.77%. The bull call spread on TDY 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 TDY specifically: TDY IV at 27.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 7.77% (roughly $47.93 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 TDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDY should anchor to the underlying notional of $616.85 per share and to the trader's directional view on TDY stock.
TDY bull call spread setup
The TDY 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 TDY near $616.85, the first option leg uses a $620.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDY 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 TDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $620.00 | $21.35 |
| Sell 1 | Call | $650.00 | $9.65 |
TDY bull call spread risk and reward
- Net Premium / Debit
- -$1,170.00
- Max Profit (per contract)
- $1,830.00
- Max Loss (per contract)
- -$1,170.00
- Breakeven(s)
- $631.70
- Risk / Reward Ratio
- 1.564
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.
TDY bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on TDY. 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% | -$1,170.00 |
| $136.40 | -77.9% | -$1,170.00 |
| $272.79 | -55.8% | -$1,170.00 |
| $409.17 | -33.7% | -$1,170.00 |
| $545.56 | -11.6% | -$1,170.00 |
| $681.95 | +10.6% | +$1,830.00 |
| $818.34 | +32.7% | +$1,830.00 |
| $954.72 | +54.8% | +$1,830.00 |
| $1,091.11 | +76.9% | +$1,830.00 |
| $1,227.50 | +99.0% | +$1,830.00 |
When traders use bull call spread on TDY
Bull call spreads on TDY reduce the cost of a bullish TDY stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
TDY thesis for this bull call spread
The market-implied 1-standard-deviation range for TDY extends from approximately $568.92 on the downside to $664.78 on the upside. A TDY bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on TDY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TDY IV rank near 49.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on TDY should anchor more to the directional view and the expected-move geometry. As a Technology name, TDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDY-specific events.
TDY 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. TDY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDY alongside the broader basket even when TDY-specific fundamentals are unchanged. Long-premium structures like a bull call spread on TDY 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 TDY chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on TDY?
- A bull call spread on TDY is the bull call spread strategy applied to TDY (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 TDY stock trading near $616.85, the strikes shown on this page are snapped to the nearest listed TDY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TDY 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 TDY bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is $1,830.00 per contract and the computed maximum loss is -$1,170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDY bull call spread?
- The breakeven for the TDY bull call spread priced on this page is roughly $631.70 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 TDY market-implied 1-standard-deviation expected move is approximately 7.77%; 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 TDY?
- Bull call spreads on TDY reduce the cost of a bullish TDY 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 TDY implied volatility affect this bull call spread?
- TDY ATM IV is at 27.10% with IV rank near 49.09%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.