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Ratio Call Spread

Bullish strategy with unlimited upside risk.

Advanced

Market Outlook

bullish

Family

multi-leg

Capital Req

medium

Risk Profile

medium

Strategy Overview

Key characteristics and when to use

Structure

Buy 1 Call + Sell 2 Higher Strike Calls

Greek Profile

Positive delta initially, negative gamma, positive theta

Characteristics

CreditBullishAdvancedUnlimited Risk

Profit & Loss Formulas

Mathematical breakdown

Max Profit

Short strike - long strike + net credit

Max Loss

Unlimited above upper breakeven

Breakeven

Lower: Long strike + net debit; Upper: Variable