COVERED CALL	SHORT CALL LADDER
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o 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..

COVERED CALL Vs SHORT CALL LADDER - Details

	COVERED CALL	SHORT CALL LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- 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

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

	COVERED CALL	SHORT CALL LADDER
Market View	Bullish	Neutral
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	This strategy is implemented when a trader is moderately bullish on the market, and volatility
Action	(Buy Underlying) (Sell OTM Call Option)	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Purchase Price of Underlying- 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

COVERED CALL Vs SHORT CALL LADDER - Risk & Reward

	COVERED CALL	SHORT CALL LADDER
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + 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	Purchase Price of Underlying - Price of Underlying) + Premium Received	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED CALL Vs SHORT CALL LADDER - Strategy Pros & Cons

	COVERED CALL	SHORT CALL LADDER
Similar Strategies	Bull Call Spread	Short Put Ladder, Strip, Strap
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• Unlimited risk. • Margin required.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.