Call Ratio Back Spread: Built for Explosive Bullish Moves, Not Slow Markets

Strategy Concept A Call Ratio Back Spread is designed for very bullish scenarios where a strong, fast price move is expected. It benefits from volatility expansion and acceleration. Example & Payoff

traded near ₹1150 in Nov 2023. • Market View: Very Bullish Use this strategy only when expecting a strong, fast upside move in the stock or index. • The Trade (Same Expiry): o Sell 1 × 1150 CE @ ₹60 o Buy 2 × 1200 CE @ ₹29 each o Net Premium: Pay ₹2 (near zero-cost) • Breakeven: o Upper Breakeven: 1200 + (1200 − 1150) + 2 = ₹1252 o Below lower levels, loss remains limited • Max Profit: Unlimited on strong rallies above upper breakeven • Max Loss: o (1200 − 1150) + 2 = ₹52, limited and predefined • Premium: Pay / Receive / Zero-cost (ideal near zero) • Margin: Required • Time Effect: Loses value if price stays stagnant • Volatility Effect: Highly positive—IV expansion helps • Pros: Unlimited upside, limited risk, benefits from momentum • Cons: Suffers in slow or modest upmoves Summary: A high-conviction bullish strategy designed for speed and volatility, not patience. ________________________________________ 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. AI may have been used for grammatical and sentence-structure refinement. Please consult a SEBI-registered advisor before making any investment decisions.