Call back spreads
are ideal when you are expecting big moves in already volatile stocks. The
strategy involves selling a call at a lower strike price, then buying a greater
number of calls at a higher strike price. It is best conducted for a minimal
debit or small credit, so if the stock drops you wont suffer either way. But, if
the stock rallies you will have unlimited potential profits as you hold more
long calls than short. To maximize the profit traders often use in the money
options as they have a higher likelihood of finishing in the money.