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Call Ratio Back-Spread

Description

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A call ratio backspread sells one call at a lower strike and buys two calls at a higher strike in the same expiration, which leaves the position net long options.

All three contracts are quoted from bid and ask, the net premium is totalled, and profit and loss at expiration is charted so the worst outcome, which sits at the long strike, is visible along with the point where the two long calls overtake the short one. Enter your own strikes and ratio to see how the shape changes.

Template Screenshots

Call Ratio Back-Spread screenshot 1

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