Options Glossary

Glossary: Call Ratio Backspread

Last Updated: July 12, 2015


Call Ratio Backspread

What Does Call Ratio Backspread Mean in Options Trading?

A strategy buying more of the out of money calls than shorted at or in the money calls. This position has unlimited upside profit and small downside profit. The trade losses money if the underlying does not move at all and stays range bound.

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