Call ratio backspread - Definition

Call ratio backspread is an Investment strategy that uses options to limit Risk while retaining the potential to profit on the upside. It is performed by selling one Option-69'>Call option and using the collected Premium to buy a greater number of call options at a higher Strike Price. This strategy has potentially unlimited upside profit because the trader is holding more Long call options than short ones. Generally the ratio of short calls to long calls is either one to two or two to three.



Terms near "Call ratio backspread"

Call risk
Call swaption
Callable bond
Callable loan
Callable stock
Called away
Called bond
Cambodia Riel
Cameroon Franc
Canadian Dollar
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