Call Back Spread Strategy
Very BullishAdvancedBack Spread
Unlimited upside potential from large moves up with limited risk and often net credit.
How It Works
1
Sell Lower Strike: Sell fewer calls at lower strike for premium collection.
2
Buy Higher Strikes: Buy more calls at higher strike (typically 2:1 ratio).
3
Profit from Movement: Unlimited profits if stock moves significantly higher.
Key Metrics
Max Profit:Unlimited above upper breakeven
Max Loss:At higher strike price
Lower Breakeven:Lower Strike + Net Premium
Upper Breakeven:Higher Strike + Max Loss
Best Case:Large upward movement