# Bull Call Ratio Backspread vs Call Option

2. Bull Call Ratio Backspread Profit, Loss, & Breakeven

Both the profit/loss graph at expiration for the Bull Call Ratio Backspread and a call option are given below.

## Break-even

The call is superior than the bull call ratio backspread when it comes to the better upside breakeven.

• Bull Call Ratio Backspread = \$54.67
• Call = \$53.10

## Profit

The profit for a bull call ratio backspread is less than a call. The profit at a stock price of \$55 is given below :

• Bull Call Ratio Backspread = \$33
• Call = \$190

## Loss

At a stock price of \$50 (i.e. stock didn't move in 30 days) the bull call ratio backspread actually makes money, whereas the call loses money:

• Bull Call Ratio Backspread = \$33
• Call = -\$60

However, at a price of \$52.50, the bull call ratio backspread is very inferior to the call.

• Bull Call Ratio Backspread = -\$217
• Call = -\$60

Like all option strategies, the trader's exact expectations have to be considered when deciding the best strategy to use:

• Direction of stock move
• Magnitude (size) of stock move
• Time frame of stock move