Ratio Call Spread

Options Spreads Advanced NIFTY BANKNIFTY FINNIFTY Stock Options

Moderately Bullish to specific target with strong resistance

Backtest Ratio Call Spread on real market data — free

Simulate it in AlgoKing with zero real-money risk. No card required.

Start free →

Quick Reference

Strategy Type	Ratio Spread - Bullish with Income
Market Outlook	Moderately Bullish to specific target with strong resistance
Risk Profile	Limited below long strike, UNLIMITED above upper breakeven
Reward Profile	Maximum at short strike price
Time Horizon	15-30 days
Capital Requirement	Net debit Rs.1,000-5,000 plus naked call margin Rs.50,000-70,000
Best Used When	Bullish to specific resistance level in high IV environment with strong conviction price will NOT exceed upper breakeven

When to Use This Strategy

Bullish to specific resistance level in high IV environment with strong conviction price will NOT exceed upper breakeven

Payoff Diagram

P/L │ │ ╭──────╮ │ ╱ ╲ │ ╱ ╲ │ ╱ ╲ │ ╱ ╲ ─┼●────────●──────────────●───────────── Stock Price ││ │ │ ╲ ││ Long Strike Short Strike ╲ UNLIMITED ││ (Max Profit) ╲ LOSS │└─ Lower BE Upper BE ╲ │ ╲ │─ ─ ─ ─ ─ Max Loss Below (Net Debit or Small)

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
Ratio Note	Margin increases significantly near expiry due to gamma risk on naked shorts

Lot Sizes

Stocks

Varies by stock (check NSE)

Ready to test Ratio Call Spread?

AlgoKing is a flight simulator for traders — real market data, real backtests, zero real-money risk.

Create your free account

Educational simulation platform. Not investment advice. No SEBI registration required.