Call Backspread

Directional

Sell 1 lower call, buy 2 higher calls.

Performance across all datasets

SymbolReturn %SharpeMax DD %Win %Avg/trade %Trades
SPY-4532.6%-1.43+4368.5%+5.3%-238.6%19
QQQ-2494.2%-1.20+2394.2%+10.5%-131.3%19
IWM-2967.9%-1.32+2718.5%+10.5%-156.2%19
DIA-19776.3%-1.29+17853.5%+5.3%-1040.9%19
Avg-7442.8%-1.31+6833.7%+7.9%19
Cumulative P&L % — all symbols
Detail:
Cumulative P&L % — SPY

Risk Profile

Max Profit
Large upside
Max Loss
Around short strike region
Breakeven
Depends on entry credit/debit
Outlook
Bullish with vol expansion

Parameters

ParameterDefaultDescription
ratio1x2Short/long call ratio

Methodology

Backspreads are convex bullish-volatility trades with strong upside participation beyond upper strike.

Implementation

# -C(K1) + 2C(K2)