Call Ratio Front Spread

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.


  • Buy ATM/OTM Call Option – 1 Lot
  • Sell Far OTM Call Options – 2 Lots

Ideal IV Environment: High

Maximum Profit: Distance between the strikes + Credit received

How to Calculate Breakeven(s):

  • Upside: Short Call Strike + Maximum Profit Potential ( i.e. Maximum Profit/Lot Size)
  • Downside: None


Here goes an example –

  • Short 32000CE at 70.5 – 2 Lot
  • Buy 31900CE at 110 – 1 Lot

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