What is the max profit of a call ratio backspread?

Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.

What is the max loss of a call ratio backspread?

Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.

How do I calculate a call ratio backspread's profit and loss?

Open the call ratio backspread in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Call ratio backspread calculator

Bullish. Sell one call and buy two higher calls. Unlimited upside on a squeeze.

Open in the calculator All strategies

OutlookBullish

Max profitUnlimited

Max lossLimited

LevelAdvanced

What is a call ratio backspread?

A call ratio backspread is long extra OTM calls funded by a short closer-to-the-money call. A sharp rally can pay without a cap. A modest rally into the short can be the worst case.

Legs

Sell one call at A
Buy two calls at B

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net debit$1,666.00

Max loss$1,866.00

Max profitUnlimited

Chance of profitLocked: ProUpgrade

BreakevenAbove $776.66 (+2.8%)At expiration

756C−112/18 · $19.20
758C+212/18 · $17.93

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 756 call and buy 2 758 calls. Net debit $1,666. Max profit unlimited; max loss $1,866. Breakeven at expiration: Above $776.66 (+2.8%).

Open this call ratio backspread in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is a call ratio backspread?: A call ratio backspread is long extra OTM calls funded by a short closer-to-the-money call. A sharp rally can pay without a cap. A modest rally into the short can be the worst case.
When does a call ratio backspread make money?: Bullish. Sell one call and buy two higher calls. Unlimited upside on a squeeze.
What is the max profit of a call ratio backspread?: Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.
What is the max loss of a call ratio backspread?: Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
How do I calculate a call ratio backspread's profit and loss?: Open the call ratio backspread in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.