SHORT CALL LADDER	COVERED PUT
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 Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

SHORT CALL LADDER Vs COVERED PUT - Details

	SHORT CALL LADDER	COVERED PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option) + Underlying
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	Futures Price + Premium Received

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

	SHORT CALL LADDER	COVERED PUT
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	The Covered Put works well when the market is moderately Bearish.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Sell Underlying Sell OTM Put Option
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	Futures Price + Premium Received

SHORT CALL LADDER Vs COVERED PUT - Risk & Reward

	SHORT CALL LADDER	COVERED PUT
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT CALL LADDER Vs COVERED PUT - Strategy Pros & Cons

	SHORT CALL LADDER	COVERED PUT
Similar Strategies	Short Put Ladder, Strip, Strap	Bear Put Spread, Bear Call Spread
Disadvantage	• Unlimited risk. • Margin required.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.