# Call Ratio Spread

> What happens if price runs far past the upper strike?

| Property | Value |
| --- | --- |
| Market phase | Basing out, or a quiet upward drift |
| Driver | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way |
| Direction | mildly bullish with a target at the upper strike |
| Max profit | the spread width plus the credit received |
| Max loss | unlimited above the upper strike |
| Risk defined | No |
| Legs | +1 Call @K_low; -2 Call @K_high |
| Approval level | 4 (Uncovered short positions - the highest approval tier and margin requirement) |
| Experience | Advanced |

## Formulas

```text
Break-even: K_high + W + C
Max profit: W + C
Max loss: unlimited above the upper strike
```

## Legs

1. +1 Call @K_low
2. -2 Call @K_high

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/call-ratio-spread)