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Comparision (SHORT CALL LADDER VS SHORT CALL LADDER)

 

Compare Strategies

  SHORT CALL LADDER SHORT CALL LADDER
About Strategy

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.

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.

SHORT CALL LADDER Vs SHORT CALL LADDER - Details

SHORT CALL LADDER SHORT CALL LADDER
Market View Neutral 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 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 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

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

SHORT CALL LADDER SHORT CALL LADDER
Market View Neutral Neutral
When to use? This strategy is implemented when a trader is moderately bullish on the market, and volatility This strategy is implemented when a trader is moderately bullish on the market, and volatility
Action Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point 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 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

SHORT CALL LADDER Vs SHORT CALL LADDER - Risk & Reward

SHORT CALL LADDER SHORT CALL LADDER
Maximum Profit Scenario Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received 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 Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk Limited Limited
Reward Unlimited Unlimited

SHORT CALL LADDER Vs SHORT CALL LADDER - Strategy Pros & Cons

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

SHORT CALL LADDER

SHORT CALL LADDER