SHORT CALL LADDER	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

SHORT CALL LADDER Vs THE COLLAR - Details

	SHORT CALL LADDER	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	3	3
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	Price of Features - Call Premium + Put Premium

SHORT CALL LADDER Vs THE COLLAR - When & How to use ?

	SHORT CALL LADDER	THE COLLAR
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	It should be used only in case where trader is certain about the bearish market view.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM 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	Price of Features - Call Premium + Put Premium

SHORT CALL LADDER Vs THE COLLAR - Risk & Reward

	SHORT CALL LADDER	THE COLLAR
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 Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

SHORT CALL LADDER Vs THE COLLAR - Strategy Pros & Cons

	SHORT CALL LADDER	THE COLLAR
Similar Strategies	Short Put Ladder, Strip, Strap	Call Spread, Bull Put Spread
Disadvantage	• Unlimited risk. • Margin required.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.