Call Backspread Option Strategy

A call backspread sells one call at a lower strike and buys two calls at a higher strike in the same expiration, leaving the position net long options and net long upside. Gains build without a fixed ceiling on a large rally, while the worst outcome occurs with the underlying pinned at the long strike, where the loss is capped at a known amount.

Both strikes generate option symbols that price from on demand bid, ask and previous close, so the net debit or credit and the point of maximum loss recalculate against the current chain.