TXRH Bull Call Spread Strategy
TXRH (Texas Roadhouse, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names. As of December 28, 2021, it operated 566 domestic restaurants and 101 franchise restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
TXRH (Texas Roadhouse, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $11.79B, a trailing P/E of 28.46, a beta of 0.78 versus the broader market, a 52-week range of 153.83-199.99, average daily share volume of 1.1M, a public-listing history dating back to 2004, approximately 95K full-time employees. These structural characteristics shape how TXRH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places TXRH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TXRH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on TXRH?
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 TXRH snapshot
As of May 15, 2026, spot at $177.81, ATM IV 24.16%, IV rank 31.10%, expected move 6.93%. The bull call spread on TXRH 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 TXRH specifically: TXRH IV at 24.16% 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 6.93% (roughly $12.32 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 TXRH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXRH should anchor to the underlying notional of $177.81 per share and to the trader's directional view on TXRH stock.
TXRH bull call spread setup
The TXRH 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 TXRH near $177.81, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXRH 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 TXRH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $180.00 | $4.00 |
| Sell 1 | Call | $185.00 | $2.38 |
TXRH bull call spread risk and reward
- Net Premium / Debit
- -$162.50
- Max Profit (per contract)
- $337.50
- Max Loss (per contract)
- -$162.50
- Breakeven(s)
- $181.63
- Risk / Reward Ratio
- 2.077
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.
TXRH bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on TXRH. 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% | -$162.50 |
| $39.32 | -77.9% | -$162.50 |
| $78.64 | -55.8% | -$162.50 |
| $117.95 | -33.7% | -$162.50 |
| $157.26 | -11.6% | -$162.50 |
| $196.58 | +10.6% | +$337.50 |
| $235.89 | +32.7% | +$337.50 |
| $275.21 | +54.8% | +$337.50 |
| $314.52 | +76.9% | +$337.50 |
| $353.83 | +99.0% | +$337.50 |
When traders use bull call spread on TXRH
Bull call spreads on TXRH reduce the cost of a bullish TXRH stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
TXRH thesis for this bull call spread
The market-implied 1-standard-deviation range for TXRH extends from approximately $165.49 on the downside to $190.13 on the upside. A TXRH bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on TXRH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TXRH IV rank near 31.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on TXRH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, TXRH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXRH-specific events.
TXRH 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. TXRH positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TXRH alongside the broader basket even when TXRH-specific fundamentals are unchanged. Long-premium structures like a bull call spread on TXRH 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 TXRH chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on TXRH?
- A bull call spread on TXRH is the bull call spread strategy applied to TXRH (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 TXRH stock trading near $177.81, the strikes shown on this page are snapped to the nearest listed TXRH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TXRH 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 TXRH bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 24.16%), the computed maximum profit is $337.50 per contract and the computed maximum loss is -$162.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TXRH bull call spread?
- The breakeven for the TXRH bull call spread priced on this page is roughly $181.63 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 TXRH market-implied 1-standard-deviation expected move is approximately 6.93%; 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 TXRH?
- Bull call spreads on TXRH reduce the cost of a bullish TXRH 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 TXRH implied volatility affect this bull call spread?
- TXRH ATM IV is at 24.16% with IV rank near 31.10%, 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.