I opened 2 lot(s) $SPY 20240830 561.0 CALL$  ,I opened 2 lot(s) $SPY 20240830 561.0 CALL$  ,. I am adopting a new strategy called Reverse Ratio Call Spread Writing or Backspread. This strategy involves relatively low and limited risk while offering potential unlimited upside. This approach differs from my previous trading styles, which involved constructing spreads or simply selling cash-secured puts. The strategy consists of buying 2 out-of-the-money (OTM) calls and selling 1 at-the-money (ATM) or in-the-money (ITM) call. By doing this, you receive a net credit, and the combined delta of the 2 OTM calls is higher than the delta of the 1 ATM/ITM call. If the price falls below the strike price, all options will expire worthless, allowing you to keep the net credit. If the price surges significantly, higher profits will be realized from the 2 OTM calls due to their higher delta. I am still learning and would appreciate feedback from any options gurus.
SPY CALL
08-01 01:01
US20240830 561.0
SidePrice | FilledRealized P&L
Buy
Open
5.14
2Lot(s)
--
Closed
SPDR S&P 500 ETF Trust
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Modify on 2024-08-01 10:09

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  • so when will you lose money?…

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    • waikin11
      if i do not take any action by option expiry and the price closes between the 1 short Call (with lower strike) and 2 long Calls (with higher strike).
      08-01
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  • Interesting strategy
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  • waikin11
    ·08-01
    *Reverse Call Spread Writing (Backspread)
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  • eo1668
    ·08-01
    good
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  • airui
    ·08-01
    nice
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  • 6
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  • KSR
    ·08-01
    👍
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  • 3607aac3
    ·08-01
    1
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