Call ratio backspread (2×1)
BullishUnlimited profitLimited loss
Sell 1 call, buy 2 higher: unlimited upside, worst case at the long strike.
Payoff at expiry — live BTC example
Net credit
$197.39
Max profit
Unlimited
Max loss
$1,203
Breakevens
77,797 / 80,203
Example legs (0.8 DTE front)
- Sell 77,600 call
- Buy 2× 79,000 call
Entry greeks (per 1 BTC notional): Δ -0.119 · Γ 0.0326 per 1% · vega $4.82/pt · theta $-199.95/day
How it works
The short lower call pays for two long calls: often entered for a credit, unlimited profit on a rally, worst case if price pins the long strike.
When to use it
You expect either nothing or a violent rally — long convexity with credit financing.
Risks & management
The "valley of death" at the long strike near expiry: modestly up is the worst outcome.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.