Ratio Back Spread Calculator
A ratio backspread sells fewer options at one strike and buys more at another (calls or puts), often for a directional view with a long-volatility tail in one direction.
Configuration
Short Calls (Sell Fewer)
Long Calls (Buy More)
Typically 2:1 ratio (e.g., sell 1, buy 2)
Enter option details to see payoff diagram
Trade Summary
Ratio
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Net Premium
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Commonly asked Ratio Back Spread questions
What is a ratio backspread?
You sell a smaller number of contracts at one strike and buy a larger number at a farther strike (same expiry). Call version often targets a big rally; put version a big drop.
Why use unequal ratios?
To finance long wings and shape payoff: limited loss in a zone and potentially large profit in a strong move.
What are the risks?
Loss can occur in a dead zone between breakevens; call ratio backspreads can have unlimited upside but complex risk near strikes.
Are margin requirements high?
Multi-leg ratios can require significant margin; check your broker’s margin model.
Liquidity concerns?
Owing to multiple legs and ratios, fills and slippage matter; use liquid names and strikes.
Ratio backspread vs vertical?
Verticals are 1:1 contracts; ratio backspreads use different contract counts and different payoff geometry.
Related Calculators
Daily Cumulative P&L
$33,989.51+$32,609.07
Avg Trade: $60.80
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Best Performing
Morning Breakouts
82% Win Rate
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