WASH Bull Call Spread Strategy
WASH (Washington Trust Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment provides various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits, as well as debit card, automated teller machine, telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services. The Wealth Management Services segment provides investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents' estates, as well as institutional trust services comprising custody and fiduciary services. This segment serves personal and institutional clients.
WASH (Washington Trust Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $598.1M, a trailing P/E of 11.34, a beta of 0.73 versus the broader market, a 52-week range of 25.23-37.08, average daily share volume of 194K, a public-listing history dating back to 1987, approximately 618 full-time employees. These structural characteristics shape how WASH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places WASH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.34 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. WASH 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 WASH?
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 WASH snapshot
As of May 15, 2026, spot at $31.05, ATM IV 54.20%, IV rank 23.12%, expected move 15.54%. The bull call spread on WASH 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 WASH specifically: WASH IV at 54.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a WASH bull call spread, with a market-implied 1-standard-deviation move of approximately 15.54% (roughly $4.82 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 WASH expiries trade a higher absolute premium for lower per-day decay. Position sizing on WASH should anchor to the underlying notional of $31.05 per share and to the trader's directional view on WASH stock.
WASH bull call spread setup
The WASH 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 WASH near $31.05, the first option leg uses a $31.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WASH 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 WASH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $31.05 | N/A |
| Sell 1 | Call | $32.60 | N/A |
WASH 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.
WASH bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on WASH. 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 WASH
Bull call spreads on WASH reduce the cost of a bullish WASH stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
WASH thesis for this bull call spread
The market-implied 1-standard-deviation range for WASH extends from approximately $26.23 on the downside to $35.87 on the upside. A WASH bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on WASH, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current WASH IV rank near 23.12% 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 WASH at 54.20%. As a Financial Services name, WASH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WASH-specific events.
WASH 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. WASH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WASH alongside the broader basket even when WASH-specific fundamentals are unchanged. Long-premium structures like a bull call spread on WASH 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 WASH chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on WASH?
- A bull call spread on WASH is the bull call spread strategy applied to WASH (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 WASH stock trading near $31.05, the strikes shown on this page are snapped to the nearest listed WASH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WASH 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 WASH bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.20%), 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 WASH bull call spread?
- The breakeven for the WASH 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 WASH market-implied 1-standard-deviation expected move is approximately 15.54%; 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 WASH?
- Bull call spreads on WASH reduce the cost of a bullish WASH 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 WASH implied volatility affect this bull call spread?
- WASH ATM IV is at 54.20% with IV rank near 23.12%, 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.