Call Ratio Spread is a neutral to bearish strategy with no upside risk. It is doing by selling a far OTM call option to Long Call Vertical Spread. It is also known as the 1CE2CE Strategy.
Setup:
Ideal IV Environment: High
Maximum Profit: Distance between the strikes + Credit received
How to Calculate Breakeven(s):
Example:
Here goes an example – https://unofficed.com/options-calculator/?save_id=5dde77e91b195389769397