CALL BACKSPREAD	SHORT CALL LADDER
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r Read more..	Short Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..

CALL BACKSPREAD Vs SHORT CALL LADDER - Details

	CALL BACKSPREAD	SHORT CALL LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

CALL BACKSPREAD Vs SHORT CALL LADDER - When & How to use ?

	CALL BACKSPREAD	SHORT CALL LADDER
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This strategy is implemented when a trader is moderately bullish on the market, and volatility
Action	Sell 1 ITM Call, BUY 2 OTM Call	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

CALL BACKSPREAD Vs SHORT CALL LADDER - Risk & Reward

	CALL BACKSPREAD	SHORT CALL LADDER
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs SHORT CALL LADDER - Strategy Pros & Cons

	CALL BACKSPREAD	SHORT CALL LADDER
Similar Strategies	-	Short Put Ladder, Strip, Strap
Disadvantage		• Unlimited risk. • Margin required.
Advantages	• Unlimited profit potential.	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.