Also called a 'ratio spread'. You buy one call and sell two (or more) calls at a higher strike. The extra short call creates income but adds unlimited upside risk. Can sometimes be done for a credit.
Short strike - Long strike - Net debit (or + net credit)
Unlimited above short strikes
Varies based on ratio and premiums
Long 1 ATM Call + Short 2 OTM Calls (1×2 ratio)
Limited profit at optimal target. Unlimited risk above short strikes. Requires active management.
When you're moderately bullish and expect the stock to reach a target but not exceed it. Advanced strategy requiring careful risk management. Pin risk at short strike.