Call Ratio Spread (1×2)
You think price will reach a certain level from below and stall there. You're paid for the construction and earn the most if price freezes at that level; but if it flies far above, the risk is large, so this is for experienced traders.
How the Call Ratio Spread works
The extra sold call funds the position (often a credit) but leaves you net short 1 call — above the upper strike the loss grows without limit. It is ideal if price reaches exactly the upper strike.
Placing strikes at GEX levels
Set the upper (2× sold) strike at the Call Wall — the likely ceiling where a rally stalls. The ideal regime is positive GEX. Mind the unlimited upside risk.
The Call Wall is computed live in the GEX Terminal — Position Builder.
When to open, the Greeks and managing the position
Open it on a calm, overheated or consolidating market with no drivers for a parabolic rally, in elevated IV (its fall and theta accelerate the sold calls' decay). Peak profit at the upper strike = (strike gap + credit). Upper breakeven = upper strike + (strike gap) + credit; upside risk is unlimited (one naked call).
Greeks: positive theta, but a rising delta threat as price climbs. Management: as price nears the upper strike dangerously, buy back one short call (turning it into a Bull Call Spread), roll the short strikes higher, or delta-hedge with the underlying.
FAQ
Here you are net short calls (upside risk); the backspread is net long (upside profit).
If price is at the upper (sold) strike at expiry.
Build the Call Ratio Spread on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.