Call Backspread

Options Spreads Advanced NIFTY BANKNIFTY FINNIFTY Stock Options

Strongly Bullish - expecting large upward move

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Quick Reference

Strategy Type	Volatility Long - Bullish Backspread
Market Outlook	Strongly Bullish - expecting large upward move
Risk Profile	Defined Maximum Loss at Long Strike
Reward Profile	Unlimited above Upper Breakeven, Credit below Short Strike
Time Horizon	7-21 days around specific catalyst
Capital Requirement	Net Credit or small debit, margin for short call approximately Rs.40,000-60,000
Best Used When	Low IV environment before expected large bullish move or positive event catalyst

When to Use This Strategy

Low IV environment before expected large bullish move or positive event catalyst

Payoff Diagram

P/L │ ╱ │ ╱ │ ╱ │ ╱ UNLIMITED │ ╱ PROFIT │ ╱ │ ● │ ╱ Upper BE ─┼────────────●─────────────╱─────────────────── Stock Price │ ╱ │ ╱ │ ╱ │ ╱ │ ╱ Short Long Strikes (×2) │ ╱ Strike │ ● │ Max Loss Zone (between strikes) │

India-Specific Notes

Trading Hours

Equity	9:15 AM - 3:30 PM IST
Derivatives	9:15 AM - 3:30 PM IST
Pre Open	9:00 AM - 9:15 AM IST

Expiry Behavior

Weekly Expiry	Every Thursday (NIFTY, BANKNIFTY, FINNIFTY)
Monthly Expiry	Last Thursday of month (Stock options)
Settlement	Cash settled for index options
Backspread Note	Longer-dated options recommended for backspreads - weekly expiries may not give enough time for big moves

Lot Sizes

Stocks

Varies by stock (check NSE)

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