Solana Call Ratio Spreads After a Breakout Retracement

Summary

This trade note discusses a bullish setup in Solana after price broke above a cited supply zone and retraced toward a demand area. It proposes a call ratio spread: buy one out-of-the-money call and sell two calls at a higher strike with the same expiry. The example uses August options and presents a net credit, a target price region, and a maximum-profit level at expiry. The structure is intended to benefit if SOL continues upward but finishes near the short-call strike.

The article explains that the extra short call creates net short call exposure, so a sufficiently large rally can produce significant losses even though the trade begins with a credit. Its case rests on the claimed breakout and the possibility that demand support holds; the document supplies no backtest, probability estimate, or broader volatility analysis. The stated payout applies to the example contract structure and should not be generalized to other strikes, expiries, or market conditions.

Key ideas

• The proposed spread buys one call and sells two higher-strike calls at the same expiry.
• The setup relies on a retracement to demand support after a breakout.
• The example spread collects a net credit and reaches its stated maximum profit near the short strike.
• The doubled short calls create significant losses if SOL rises far beyond the target region.
• The note provides a specific trade example rather than tested evidence of repeatable performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.