I'm new to options, but couldn't the loss on a call backspread be much greater than just the net premium?
A call backspread is created by buying 2 out-of-the-money calls and selling 1 in-the-money call, earning you a net credit premium. It is meant for stocks that are high volatility and bullish. You earn unlimited profit if the stock climbs.
The call backspread (reverse call ratio spread) is a bullish strategy in options trading whereby the options trader writes a number of call options and buys more call options of the same underlying stock and expiration date but at a higher strike ...
With a call backspread, you buy a greater number of higher strike (lower delta) calls and sell a lesser number of lower strike (higher delta) calls with the same expiration.
To create a call backspread you might sell one lower strike call and buy two higher strike calls. This position offers limited risk and unlimited profit potential.
 See also: Backspread, Options, Premium, Strike Price, Short
  
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