Recently I started playing earning with backspreads. Two examples: Bought PCLN backspread (sold 1 240 call, bought 2 250 calls) one day before earnings when PCLN was at $233. The cost was $1.75. PCLN moved 18% after earnings, the backspread was sold for $16 â 814% return on debit and 212% return on margin. Bought CRM backspread (sold 1 100 call, bought 2 105 calls) one day before earnings when CRM was at $97. The cost was $0.60. CRM moved 12% after earnings, the backspread was sold for $3.30 â 450% return on debit and 48% return on margin. The beauty of this strategy is having an unlimited upside potential with very little risk. If you close it right after the earnings, your loss is limited to the debit paid even if the stock moves lower. In most cases, you should be able to recover at least part of the debit, but in any case, the required debit is usually very low. The breakeven point is usually only 3-4% move higher. Compared to buying straight call, the required capital is usually dramatically lower. Any thoughts?