Expectation : Bullish

Profit When : Up

Risk : Limited

Reward : Unlimited

Breakeven Pt : (Maximum loss / (number of long call options - number of short call options)) + Strike Price Of Long Call Options

Max Profit : Unlimited

Maximum loss = Total Premium Of Long Call - Total Premium Of Short Call

OppiE's Note : The purpose of a short bull ratio spread is to totally eliminate upfront payment for the ATM calls through the sale of the ITM calls. Since there are more ATM calls than ITM calls, the ATM calls would eventually rise faster than the ITM calls, resulting in a profit as long as the stock keep rising. Since nothing is paid for the position, it could also lose nothing if the stock falls strongly. Maximum loss occurs when the stock expires at the strike price of the ATM calls.