SHORT CALL	SHORT CALL LADDER
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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..

SHORT CALL Vs SHORT CALL LADDER - Details

	SHORT CALL	SHORT CALL LADDER
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + 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 Vs SHORT CALL LADDER - When & How to use ?

	SHORT CALL	SHORT CALL LADDER
Market View	Bearish	Neutral
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This strategy is implemented when a trader is moderately bullish on the market, and volatility
Action	Sell or Write Call Option	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Strike Price of Short Call + 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 Vs SHORT CALL LADDER - Risk & Reward

	SHORT CALL	SHORT CALL LADDER
Maximum Profit Scenario	Max Profit = 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	Loss Occurs When Price of Underlying > Strike Price of Short Call + 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

SHORT CALL Vs SHORT CALL LADDER - Strategy Pros & Cons

	SHORT CALL	SHORT CALL LADDER
Similar Strategies	Covered Put, Covered Calls	Short Put Ladder, Strip, Strap
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Unlimited risk. • Margin required.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.