---
title: "Call Ratio Spread — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Volatility"
outlook: "Neutral / range-bound"
complexity: "advanced"
risk: "undefined (open-ended)"
slug: "call-ratio-spread"
url: "https://learn-derivatives.tapetide.com/strategies/call-ratio-spread"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/call-ratio-spread.md"
source: "DeltaDesk by Tapetide"
---

# 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.

**Category:** Volatility · **Market view:** Neutral / range-bound · **Complexity:** advanced · **Risk:** Undefined (open-ended)

## Structure

- Buy ATM call
- Sell 2× ATM+3 strikes call

## Summary

Buy 1 call, sell 2 higher calls — often a credit, with a profit zone but risk above.

## When to use it

Mildly bullish but expecting the price to stall near the short strikes. Often financed for a credit.

## Profit & loss

- **Max profit:** Around the short strike at expiry.
- **Max loss:** Unlimited above the short strikes (the extra naked call).

## Net Greeks profile

Short gamma above; positive theta if a credit.

## Margin

Margin-intensive (you sell options).

## Common mistakes

- Forgetting the naked-call tail risk above the short strikes.

## India example

Buy an ATM call, sell 2x 3-OTM calls for a small credit.

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**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*