Petro-Lwa Strategy VII · User Manual

The Call Ratio Backspread Rocket

Aggressive bull · Squeeze breakout · Uncapped upside

What is this strategy?

The mirror image of the Bear Backspread. You sell one call just above the money and buy two calls further OTM. If price stalls or drops, the short call expires worthless and you keep the small credit. If price explodes upward, the two long calls overpower the one short — your payoff is uncapped. Petro-Lwa fires this when a Bollinger squeeze just released to the upside AND option premium is still cheap — the rocket-fuel signature.

When does it trigger?

The Pine indicator PETRO-LWA-VII.pine fires when all of these are true on the closed bar:

SignalDefault
Squeeze just released (prior bar squeezed, this bar not)true
Close > EMA20 (breakout direction is up)true
Bull stack (close > EMA50 > EMA200)true
IV Rank still cheap< 45
RSI not yet overheated< 70

Translation: compression just broke up, the trend agrees, options are still cheap, and there is room to run.

1

Download the Pine script

⬇ Download PETRO-LWA-VII.pine
2

Install on TradingView

Chart → Pine Editor → paste → Save → Add to chart.

▼ Pine Editor TradingView //@version=6 indicator("PETRO-LWA VII · Rocket") breakout = squeeze[1] and not squeeze setup = breakout and trend_bull and iv_rank < 45 and rsi < 70 label.new("🔥 VII · ROCKET") [Save] [Add to chart] CHART · BTCUSD 🚀 🔥 ROCKET + ADD TO CHART
3

Read the chart label

A bright orange up-arrow drops with the IV-rank and RSI numbers — confirming the breakout is fresh and premium is still affordable.

🔥 VII · ROCKET breakout · IV 32 · RSI 56 build the 1:2 call ratio · ride the move BTC/USD · 1D
4

Set up the alert

Right-click → Add alert. Condition: “PETRO VII · Rocket”. Webhook URL for the bridge.

Create Alert CONDITION PETRO·VII ▸ PETRO VII · Rocket ▸ Once Per Bar Close WEBHOOK URL https://lasiren-bridge.cryptolwa.app/alert MESSAGE {{ticker}} rocket iv {{plot}} CREATE
5

Execute the options trade on Deribit

Pick a 30-60 DTE expiry. Sell 1 call at +5%. Buy 2 calls at +15%. Net cost: zero or small credit. If BTC blasts +20% or more, the long pair compounds rapidly. Plan to close one of the two longs when price hits +15% (lock in profit), let the second one ride for the rocket.

DERIBIT · BTC CALL 1:2 BACKSPREAD · 45 DTE SPOT $100,000 · sell 1 ATM-ish / buy 2 OTM LEG STRIKE PREMIUM ◀ SELL 1 CALL 105k (+5%) + 3,200 (credit) ▶ BUY 1 CALL 115k (+15%) - 1,600 (debit) ▶ BUY 1 CALL 115k (+15%) - 1,600 (debit) NET ≈ ZERO / SMALL CREDIT · free upside lottery Risk pocket between 105k–115k = 10k worst case minus credit

Risk profile

Max LossStrike Spread - Credit
Max RewardUnlimited Upside
Best MarketSqueeze → Breakout

When NOT to use this

  • Late-stage parabolic markets — IV is high (premium expensive) and the rocket has already launched.
  • Range-bound or bearish tape — the long calls decay; the short call could land in the money.
  • Without sizing discipline — the inner-strike loss zone is real; never bet more than you can lose.

Plain-English glossary

BackspreadYou buy more contracts than you sell — net long the explosive direction.
Ratio (1:2)One contract sold, two bought. The math behind exponential upside.
SqueezeBB width narrowing — energy compressed, expansion imminent.
BreakoutThe first close outside the squeeze, especially with momentum.
IV Rank0-100 percentile of current vol vs. last year. Low = cheap options.
EMA Stack20 > 50 > 200 — textbook bull alignment.
Net CreditYou receive cash to open the trade.
Inner Loss ZonePrice range between the strikes where the trade peaks at max loss.