{"id":217649,"date":"2026-08-25T12:29:53","date_gmt":"2026-08-25T06:59:53","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217649"},"modified":"2026-08-25T12:29:55","modified_gmt":"2026-08-25T06:59:55","slug":"ratio-call-spread-nifty-midcap-select","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/ratio-call-spread-nifty-midcap-select\/","title":{"rendered":"Ratio Call Spread Nifty Midcap Select: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty Midcap Select level used in this article: Rs 13,850 (as of illustrative reference level; verify current level on NSE). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 120. Weekly options on Nifty Midcap Select were discontinued in November 2024 under SEBI’s one weekly index per exchange rule; only monthly contracts remain.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

The ratio call spread Nifty Midcap Select buys one call at a lower strike and sells a larger number of calls, typically two, at a higher strike, on the same expiry. With Nifty Midcap Select at Rs 13,850, the ratio call spread Nifty Midcap Select can often be structured for a small net credit or a small net debit depending on the strikes chosen, and may profit if the index rises moderately toward the short strike. Unlike a standard bull call spread, the ratio call spread Nifty Midcap Select carries unlimited theoretical risk above the short strike because the extra sold call has no offsetting long call. This makes it a structurally different risk profile from the defined risk spreads covered elsewhere in this series.<\/p>\n<\/div>\n

The this strategy is built on the idea that selling more options than you buy increases the credit collected or reduces the net debit, at the cost of introducing uncapped risk beyond a certain point. The most common construction uses a 1 by 2 ratio, buying one call and selling two, though other ratios such as 1 by 3 are also used, each with a different risk and reward balance.<\/p>\n

Because the ratio call spread Nifty Midcap Select combines a defined risk vertical spread with an extra naked short call, it sits between simple defined risk strategies like the bull call spread and undefined risk strategies like the short strangle. Traders should be clear about this hybrid risk profile before using the the position.<\/p>\n

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