XMAX Bull Call Spread Strategy
XMAX (XMAX, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
XMAX, Inc. focuses on the creation, manufacturing, and promotion of contemporary household furniture. The company offers a wide array of products, including collections for living rooms, urban-style dining spaces, bedrooms, and their unique 'nova qwik' series. These items are sold under several brand names, specifically Nova LifeStyle, Diamond Sofa, and Nova Living. The firm was established in 1992 by Ya Ming Wong and Yuen Ching Ho, and its primary operations are based in Commerce, California.
XMAX (XMAX, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $566.7M, a beta of 1.24 versus the broader market, a 52-week range of 7.77-9.34, average daily share volume of 1.3M, a public-listing history dating back to 2026, approximately 22 full-time employees. These structural characteristics shape how XMAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places XMAX 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 XMAX?
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.
XMAX snapshot
As of August 14, 2026, spot at $9.04, ATM IV 141.20%, expected move 40.48%. The bull call spread on XMAX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bull call spread structure on XMAX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for XMAX is inferred from ATM IV at 141.20% alone, with a market-implied 1-standard-deviation move of approximately 40.48% (roughly $3.66 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XMAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on XMAX should anchor to the underlying notional of $9.04 per share and to the trader's directional view on XMAX stock.
XMAX bull call spread setup
The XMAX 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 XMAX at $9.04 on that close, the first option leg uses a $9.04 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XMAX chain at a 35-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 XMAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.04 | N/A |
| Sell 1 | Call | $9.49 | N/A |
XMAX 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.
XMAX bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on XMAX. 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 XMAX
Bull call spreads on XMAX reduce the cost of a bullish XMAX stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
XMAX thesis for this bull call spread
The market-implied 1-standard-deviation range for XMAX extends from approximately $5.38 on the downside to $12.70 on the upside. A XMAX bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on XMAX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Consumer Cyclical name, XMAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XMAX-specific events.
XMAX 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. XMAX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XMAX alongside the broader basket even when XMAX-specific fundamentals are unchanged. Long-premium structures like a bull call spread on XMAX 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 XMAX chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on XMAX?
- A bull call spread on XMAX is the bull call spread strategy applied to XMAX (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 XMAX stock at $9.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed XMAX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are XMAX 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 XMAX bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 141.20%), 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 XMAX bull call spread?
- The breakeven for the XMAX bull call spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 XMAX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 40.48%; 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 XMAX?
- Bull call spreads on XMAX reduce the cost of a bullish XMAX 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 XMAX implied volatility affect this bull call spread?
- Current XMAX ATM IV is 141.20%; IV rank context is unavailable in the current snapshot.