SHORT CALL LADDER	LONG GUTS
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..	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

SHORT CALL LADDER Vs LONG GUTS - Details

	SHORT CALL LADDER	LONG GUTS
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
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 = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	SHORT CALL LADDER	LONG GUTS
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 by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Buy 1 ITM Call, Buy 1 ITM 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	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

SHORT CALL LADDER Vs LONG GUTS - Risk & Reward

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

SHORT CALL LADDER Vs LONG GUTS - Strategy Pros & Cons

	SHORT CALL LADDER	LONG GUTS
Similar Strategies	Short Put Ladder, Strip, Strap	Short Put Ladder, Strip, Strap
Disadvantage	• Unlimited risk. • Margin required.	• More commission involved than simply buying call or put option. • Expensive.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.