How are UPS 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 UPS bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.13%), the computed maximum profit is $372.50 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UPS bull call spread?

The breakeven for the UPS bull call spread priced on this page is roughly $106.28 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UPS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UPS implied volatility affect this bull call spread?

UPS ATM IV is at 22.13% with IV rank near 1.17%, 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.

UPS Bull Call Spread Strategy

UPS (United Parcel Service, Inc.), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NYSE.

United Parcel Service, Inc., a package delivery and logistics provider, offers transportation and delivery services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for express letters, documents, packages and palletized freight through air and ground services. The International Package segment provides small package operations in Europe, the Middle East and Africa, Canada and Latin America, and Asia.

UPS (United Parcel Service, Inc.) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $88.29B, a trailing P/E of 19.33, a beta of 1.04 versus the broader market, a 52-week range of 82-122.41, average daily share volume of 5.5M, a public-listing history dating back to 1999, approximately 460K full-time employees. These structural characteristics shape how UPS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places UPS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UPS 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 UPS?

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.

UPS snapshot

As of August 14, 2026, spot at $104.75, ATM IV 22.13%, IV rank 1.17%, expected move 6.35%. The bull call spread on UPS below is built from the August 14, 2026 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 UPS specifically: UPS IV at 22.13% is on the cheap side of its 1-year range, which favors premium-buying structures like a UPS bull call spread, with a market-implied 1-standard-deviation move of approximately 6.35% (roughly $6.65 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 UPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on UPS should anchor to the underlying notional of $104.75 per share and to the trader's directional view on UPS stock.

UPS bull call spread setup

The UPS bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UPS at $104.75 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UPS 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 UPS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$105.00	$1.88
Sell 1	Call	$110.00	$0.61

UPS bull call spread risk and reward

Net Premium / Debit: -$127.50
Max Profit (per contract): $372.50
Max Loss (per contract): -$127.50
Breakeven(s): $106.28
Risk / Reward Ratio: 2.922

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.

UPS bull call spread payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$127.50
$23.17	-77.9%	-$127.50
$46.33	-55.8%	-$127.50
$69.49	-33.7%	-$127.50
$92.65	-11.6%	-$127.50
$115.81	+10.6%	+$372.50
$138.97	+32.7%	+$372.50
$162.13	+54.8%	+$372.50
$185.29	+76.9%	+$372.50
$208.45	+99.0%	+$372.50

When traders use bull call spread on UPS

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

UPS thesis for this bull call spread

The market-implied 1-standard-deviation range for UPS extends from approximately $98.10 on the downside to $111.40 on the upside. A UPS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on UPS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current UPS IV rank near 1.17% 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 UPS at 22.13%. As a Industrials name, UPS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UPS-specific events.

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

Frequently asked questions

What is a bull call spread on UPS?: A bull call spread on UPS is the bull call spread strategy applied to UPS (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 UPS stock at $104.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UPS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UPS 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 UPS bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.13%), the computed maximum profit is $372.50 per contract and the computed maximum loss is -$127.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UPS bull call spread?: The breakeven for the UPS bull call spread priced on this page is roughly $106.28 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UPS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.35%; 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 UPS?: Bull call spreads on UPS reduce the cost of a bullish UPS 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 UPS implied volatility affect this bull call spread?: UPS ATM IV is at 22.13% with IV rank near 1.17%, 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.