This call ratio Backspread stratgy applied in 2 circumstances:-
1)When a trader sell 1 at the money call.
2) When a trader bbuy 2 or more out of the money call.
Call Ratio Back Spread Strategies
This call ratio back spread strategy is best for the situation when you expect the market to make a substantial up move after a period of stagnation. and also the situation when the objective is to pu this trade on as a credit, a free trade / very cheap.
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