Short call spread + one more long call higher. Profits on a big rally or a fade.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell a call spread and buy one more call higher up. Despite the name, it profits from a BIG rally (the extra long call) or a fade below the short strike (the credit) — losing in the middle zone.
When a stock will either break out hard or fail at resistance — you get paid either way, and only the half-hearted rally hurts.
Maximum loss sits between the middle and top strikes at expiration. Defined, but reached in the most common scenario: a modest grind higher.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.