Writing or selling a call option - or a naked call - often requires additional requirements from your broker because it leaves you open to unlimited exposure as the underlying commodity rises in value.

A ratio back spread involves selling one lot of in-the-money options, and buying twice as many at- or out-of-the-money options (of the same type and expiry), to open the trade for a credit.

A call ratio back spread is strongly bullish, requiring a strong upward move to profit. Conversely, a put ratio back spread is strongly bearish.

Customised strategy with 2 legs