SHORT CALL LADDER	LONG CALL BUTTERFLY
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 Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

SHORT CALL LADDER Vs LONG CALL BUTTERFLY - Details

	SHORT CALL LADDER	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
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	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	SHORT CALL LADDER	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
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 = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

SHORT CALL LADDER Vs LONG CALL BUTTERFLY - Risk & Reward

	SHORT CALL LADDER	LONG CALL BUTTERFLY
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

SHORT CALL LADDER Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	SHORT CALL LADDER	LONG CALL BUTTERFLY
Similar Strategies	Short Put Ladder, Strip, Strap	-
Disadvantage	• Unlimited risk. • Margin required.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.