Compare Strategies
SHORT CALL LADDER | SHORT CALL CONDOR SPREAD | |
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About Strategy |
Short Call Ladder Option StrategyThis 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:
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Short Call Condor Spread Option StrategyShort Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. |
SHORT CALL LADDER Vs SHORT CALL CONDOR SPREAD - Details
SHORT CALL LADDER | SHORT CALL CONDOR SPREAD | |
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Market View | Neutral | Volatile |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 3 | 4 |
Strategy Level | Advance | Advance |
Reward Profile | Unlimited | Limited |
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 | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
SHORT CALL LADDER Vs SHORT CALL CONDOR SPREAD - When & How to use ?
SHORT CALL LADDER | SHORT CALL CONDOR SPREAD | |
---|---|---|
Market View | Neutral | Volatile |
When to use? | This strategy is implemented when a trader is moderately bullish on the market, and volatility | This strategy is used when an investor expect the price of the underlying stock to be very volatile. |
Action | Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call 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 | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
SHORT CALL LADDER Vs SHORT CALL CONDOR SPREAD - Risk & Reward
SHORT CALL LADDER | SHORT CALL CONDOR SPREAD | |
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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 Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
Maximum Loss Scenario | Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid |
Risk | Limited | Limited |
Reward | Unlimited | Limited |
SHORT CALL LADDER Vs SHORT CALL CONDOR SPREAD - Strategy Pros & Cons
SHORT CALL LADDER | SHORT CALL CONDOR SPREAD | |
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Similar Strategies | Short Put Ladder, Strip, Strap | Short Strangle |
Disadvantage | • Unlimited risk. • Margin required. | • Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
Advantages | • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss. | • This strategy allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone. |