Call Ratio Backspread

directional Capped loss

Advanced: strongly bullish with unlimited upside, often opened for a credit.

When to use it

Sell 1 lower call, buy 2 higher calls. Profits big on a strong rally; small loss in a narrow "valley." Best when expecting an explosive move up.

Max profit

Unlimited above the long strikes.

Max loss

The valley between strikes minus any credit.

Payoff at expiry

illustrative shape — not to scale

■ profit zone ■ loss zone X axis = stock price at expiry →

How it's built

Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.

This structure has an open-ended or multi-expiration payoff that our backtester can't model honestly (it would report unrealistic win rates and zero drawdown), so we teach it with concrete strikes and a real max-loss figure rather than publish unreliable backtest numbers. Open any ticker's trade cockpit and pick this strategy to see specific strikes, max loss, and max profit.