Call Ratio Backspread is a option strategy which enables accelerated profits provided the underlying moves sharply upwards.
This strategy has unlimited profit potential with limited risk.
The basic premise of this strategy is that you expect the underlying to move sharply higher, this strategy could loose money if the underlying stays flat or moves up slowly.
You can enter this strategy by selling one lower strike call and buying two higher strike calls with the same expiration.
Example: If you were to implement this strategy on 25th march 2014 1:30 PM with Nifty @ 6578
Sell one lot 6500 calls @98.55
Buy two lots 6600 calls @29.3
Net Debit = -39.95
Max Profit = Uncapped
Max Risk = 60.05 (Difference in strikes + net debit)
Note: Most important thing to remember with this strategy is it would only work well when the underlying moves sharply higher, not a good strategy for people who are mildly bullish.