Call Ratio Spread
In plain English
You buy one call and sell two higher ones, often for a credit. You profit if the price drifts up to the short strikes — but selling an extra naked call means open-ended risk if it runs too far.
How it's built
Buy 1 call, sell 2 higher calls — often a credit, with a profit zone but risk above.
Illustrative payoff at expiry on a NIFTY-like underlying (spot 24,000, 7d, 13% IV). The shape is the point — open it in the Strategy Lab to tune spot, time and volatility live.
Max profit₹13,039
Max lossUnlimited
Net premiumCr ₹3,329
Breakevens—
When to use it
Mildly bullish but expecting the price to stall near the short strikes. Often financed for a credit.
Max profit
Around the short strike at expiry.
Max loss
Unlimited above the short strikes (the extra naked call).
Common mistakes
- Forgetting the naked-call tail risk above the short strikes.