Strategy

Ratio Call Spread

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Buy one call, sell two higher strike calls

What is Ratio Call Spread?

Ratio Call Spread A bullish-to-neutral strategy where you buy one lower-strike call and sell two (or more) higher-strike calls. The extra short call is typically covered by the long call up to the short strike. Maximum profit occurs at the short strike. Risk is unlimited above the upper breakeven if the extra short calls are uncovered.

Complete Definition

A bullish-to-neutral strategy where you buy one lower-strike call and sell two (or more) higher-strike calls. The extra short call is typically covered by the long call up to the short strike. Maximum profit occurs at the short strike. Risk is unlimited above the upper breakeven if the extra short calls are uncovered.

Example

Buy 1 $150 call for $5, sell 2 $160 calls for $2.50 each. Net cost: $0. Max profit $10 at $160. Unlimited risk above $170.

Related Terms

Ratio Spread Ratio Put Spread Front Spread Back Spread

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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