Understanding The Call Ratio Back Spread Strategy

In the realm of options trading, the Call Ratio Back Spread strategy emerges as a powerful tool for traders with a bullish outlook and expectations of high volatility. This strategy leverages an imbalance in the number of call options sold and purchased, allowing traders to benefit from strong upward market movements while minimising risk. Let’s dive into how our fictional investor Sarvani Shah uses the Call Ratio Back Spread to capitalise on a potentially explosive bullish scenario.