Compare Strategies
| SHORT CALL LADDER | SHORT CALL LADDER | |
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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 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 LADDER Vs SHORT CALL LADDER - Details
| SHORT CALL LADDER | SHORT CALL LADDER | |
|---|---|---|
| Market View | Neutral | Neutral |
| Type (CE/PE) | CE (Call Option) | CE (Call Option) |
| Number Of Positions | 3 | 3 |
| Strategy Level | Advance | Advance |
| Reward Profile | Unlimited | Unlimited |
| 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 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 LADDER Vs SHORT CALL LADDER - When & How to use ?
| SHORT CALL LADDER | SHORT CALL LADDER | |
|---|---|---|
| Market View | Neutral | Neutral |
| When to use? | This strategy is implemented when a trader is moderately bullish on the market, and volatility | This strategy is implemented when a trader is moderately bullish on the market, and volatility |
| Action | Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call | Sell 1 ITM Call, Buy 1 ATM 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 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 LADDER Vs SHORT CALL LADDER - Risk & Reward
| SHORT CALL LADDER | SHORT CALL LADDER | |
|---|---|---|
| Maximum Profit Scenario | Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net 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 | 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 Short Call - Net Premium Received + Commissions Paid |
| Risk | Limited | Limited |
| Reward | Unlimited | Unlimited |
SHORT CALL LADDER Vs SHORT CALL LADDER - Strategy Pros & Cons
| SHORT CALL LADDER | SHORT CALL LADDER | |
|---|---|---|
| Similar Strategies | Short Put Ladder, Strip, Strap | Short Put Ladder, Strip, Strap |
| Disadvantage | • Unlimited risk. • Margin required. | • Unlimited risk. • Margin required. |
| Advantages | • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss. | • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss. |