bull strategy CALL BACKSPREAD

Example: Sell 1 call;
buy 2 calls at higher strike
Market Outlook: Very bullish
Risk: Limited
Reward: Unlimited
Increase in Volatility:
Typically helps position
Time Erosion:
Typically hurts position
BEP: Two BEPs
1. Short call strike plus premium
received
2. Long call strike plus [(the
difference between the long call
strike and short call strike) minus
credit received]