{"id":217912,"date":"2026-08-25T10:15:32","date_gmt":"2026-08-25T04:45:32","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217912"},"modified":"2026-08-25T10:15:34","modified_gmt":"2026-08-25T04:45:34","slug":"call-ratio-backspread-nifty-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/call-ratio-backspread-nifty-50\/","title":{"rendered":"Call Ratio Backspread Nifty 50: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty 50 level used in this article: Rs 24,216 (as of 24 Aug 2026). Next weekly (Tuesday) and monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 65. Nifty 50 retained its weekly expiry slot on NSE under SEBI’s one weekly index per exchange rule; Bank Nifty, Nifty Financial Services, and Nifty Midcap Select lost their weekly contracts instead, in November 2024. Both weekly and monthly Nifty 50 contracts remain available.<\/em><\/p>\n

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

The call ratio backspread Nifty 50 sells one call at a lower strike and buys a larger number of calls, typically two, at a higher strike, on the same expiry. This is the reverse ratio of the ratio call spread covered elsewhere in this series. With Nifty 50 at Rs 24,216, the call ratio backspread Nifty 50 has a defined maximum loss that occurs at or near the higher strike, but unlimited profit potential if the index rallies significantly beyond that point, since the extra long call has no offsetting short call. The call ratio backspread Nifty 50 may be considered when a trader expects either a large rally or, in some structures, is comfortable profiting modestly if the index stays flat or falls, depending on whether the position is entered for a credit.<\/p>\n<\/div>\n

The this strategy inverts the logic of the ratio call spread: instead of selling more options than are bought, it buys more than it sells. This shifts the unlimited exposure from the downside of the trade (as in a ratio call spread) to a position that benefits from a large upside move, while keeping the loss capped at a specific, calculable level in the middle zone between the strikes.<\/p>\n

Because the call ratio backspread Nifty 50 buys more options than it sells, it is often structured for a smaller net debit, and in some cases even a net credit, depending on the strikes and the implied volatility skew between them.<\/p>\n

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