Also known as: Call Ratio Backspread
Sell 1 call + buy 2 higher calls. Wins big on a rally; small credit if it fades.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell one call and buy TWO calls at a higher strike, usually for near-zero cost or a credit. A big rally pays on the extra long call; a fade below the short strike keeps the credit. The loss pocket sits at the long strike.
When you expect either a violent rally or nothing — post-crash rebounds, squeeze setups. The trade to avoid is the grind that stalls exactly at your long strike.
Maximum loss at the long strike at expiration: the spread width minus the credit. The "valley of death" between the strikes is where slow, modest rallies land.
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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.