SHORT CALL LADDER	COVERED COMBINATION
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. Risk: Read more..	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

SHORT CALL LADDER Vs COVERED COMBINATION - Details

	SHORT CALL LADDER	COVERED COMBINATION
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
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	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

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

	SHORT CALL LADDER	COVERED COMBINATION
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Sell 1 OTM Call, Sell 1 OTM Put
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	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

SHORT CALL LADDER Vs COVERED COMBINATION - Risk & Reward

	SHORT CALL LADDER	COVERED COMBINATION
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT CALL LADDER Vs COVERED COMBINATION - Strategy Pros & Cons

	SHORT CALL LADDER	COVERED COMBINATION
Similar Strategies	Short Put Ladder, Strip, Strap	Stock Repair Strategy
Disadvantage	• Unlimited risk. • Margin required.	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.