Call Backspread

Directional

Sell 1 lower call, buy 2 higher calls.

Performance across all datasets

SymbolReturn %SharpeMax DD %Win %Avg/trade %Trades
SPY-993.6%-0.29+947.0%+26.3%-52.3%19
QQQ+320.4%0.05+610.5%+47.4%+16.9%19
IWM+1011.2%0.26+418.3%+68.4%+53.2%19
DIA-2820.8%-0.87+2504.6%+26.3%-148.5%19
Avg-620.7%-0.21+1120.1%+42.1%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)