Skip to content
Theta Vantage
Connect your AISign in

25% off your first 3 months of Pro, or your first year on yearly, with FALL25, through Nov 6.

For a first Pro subscription. The 7-day free trial comes first.

See pricing

Call ratio spread calculator

Buy one call and sell two higher calls. Profit to the short strikes; naked above.

Open in the calculatorAll strategies
OutlookBullish
Max profitLimited
Max lossUnlimited
LevelExpert

What is a call ratio spread?

A call ratio spread is the reverse of the backspread. You are net short a call. A modest rally can be best-case; a blow-through the shorts is unlimited risk.

Legs

  1. Buy one call at A
  2. Sell two calls at B
Profit
Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Call Ratio Spread

SPY · Dec 18
Net credit$1,666.00
Max lossUnlimited
Max profit$1,866.00
Chance of profitLocked: ProUpgrade
BreakevenBelow $776.66 (+2.8%)At expiration
Est. margin$74,007.00
  • 756C+112/18 · $19.20
  • 758C−212/18 · $17.93
  • Profit
  • Loss
  • Breakeven
  • Spot 755.53
As of Oct 30, 15:59 ET · market closed · OI Oct 29
SPY · Oct 30, 2026, 3:59 PM ET

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

Open this call ratio spread 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 spread?
A call ratio spread is the reverse of the backspread. You are net short a call. A modest rally can be best-case; a blow-through the shorts is unlimited risk.
When does a call ratio spread make money?
Buy one call and sell two higher calls. Profit to the short strikes; naked above.
What is the max profit of a call ratio spread?
Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
What is the max loss of a call ratio spread?
Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.
How do I calculate a call ratio spread's profit and loss?
Open the call ratio spread 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.