How are URBN 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 URBN bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 42.54%), the computed maximum profit is $297.50 per contract and the computed maximum loss is -$102.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a URBN bull call spread?

The breakeven for the URBN bull call spread priced on this page is roughly $72.03 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 URBN market-implied 1-standard-deviation expected move is approximately 12.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

URBN ATM IV is at 42.54% with IV rank near 20.35%, 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.

URBN Bull Call Spread Strategy

URBN (Urban Outfitters, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.

Urban Outfitters, Inc. engages in the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail locations, websites, catalogs, and mobile applications. It operates through the following segments: Retail, Wholesale and Subscription. The Retail segment contains the Anthropologie, BHLDN, Free People, Terrain, and Urban Outfitters brands and its Food and Beverage division. The Wholesale segment designs, develops, and markets apparel, intimates, active wear, and home goods under the Free People, Anthropologie, and Urban Outfitters brands. The Subscription segment consists of the Nuuly brand, which is a monthly women’s apparel subscription rental service. The company was founded by Richard A.

URBN (Urban Outfitters, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $6.30B, a trailing P/E of 13.63, a beta of 1.22 versus the broader market, a 52-week range of 59.54-84.35, average daily share volume of 1.3M, a public-listing history dating back to 1993, approximately 11K full-time employees. These structural characteristics shape how URBN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.22 places URBN 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 URBN?

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 URBN snapshot

As of June 29, 2026, spot at $71.05, ATM IV 42.54%, IV rank 20.35%, expected move 12.20%. The bull call spread on URBN 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 32-day expiry.

Why this bull call spread structure on URBN specifically: URBN IV at 42.54% is on the cheap side of its 1-year range, which favors premium-buying structures like a URBN bull call spread, with a market-implied 1-standard-deviation move of approximately 12.20% (roughly $8.67 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated URBN expiries trade a higher absolute premium for lower per-day decay. Position sizing on URBN should anchor to the underlying notional of $71.05 per share and to the trader's directional view on URBN stock.

URBN bull call spread setup

The URBN 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 URBN near $71.05, the first option leg uses a $71.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URBN chain at a 32-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 URBN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$71.00	$3.65
Sell 1	Call	$75.00	$2.63

URBN bull call spread risk and reward

Net Premium / Debit: -$102.50
Max Profit (per contract): $297.50
Max Loss (per contract): -$102.50
Breakeven(s): $72.03
Risk / Reward Ratio: 2.902

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.

URBN bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on URBN. 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%	-$102.50
$15.72	-77.9%	-$102.50
$31.43	-55.8%	-$102.50
$47.14	-33.7%	-$102.50
$62.84	-11.5%	-$102.50
$78.55	+10.6%	+$297.50
$94.26	+32.7%	+$297.50
$109.97	+54.8%	+$297.50
$125.68	+76.9%	+$297.50
$141.39	+99.0%	+$297.50

When traders use bull call spread on URBN

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

URBN thesis for this bull call spread

The market-implied 1-standard-deviation range for URBN extends from approximately $62.38 on the downside to $79.72 on the upside. A URBN bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on URBN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current URBN IV rank near 20.35% 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 URBN at 42.54%. As a Consumer Cyclical name, URBN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URBN-specific events.

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

Frequently asked questions

What is a bull call spread on URBN?: A bull call spread on URBN is the bull call spread strategy applied to URBN (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 URBN stock trading near $71.05, the strikes shown on this page are snapped to the nearest listed URBN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are URBN 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 URBN bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 42.54%), the computed maximum profit is $297.50 per contract and the computed maximum loss is -$102.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a URBN bull call spread?: The breakeven for the URBN bull call spread priced on this page is roughly $72.03 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 URBN market-implied 1-standard-deviation expected move is approximately 12.20%; 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 URBN?: Bull call spreads on URBN reduce the cost of a bullish URBN 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 URBN implied volatility affect this bull call spread?: URBN ATM IV is at 42.54% with IV rank near 20.35%, 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.