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Comparision (SHORT CALL LADDER VS SHORT CALL CONDOR SPREAD)

 

Compare Strategies

  SHORT CALL LADDER SHORT CALL CONDOR SPREAD
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.

Short Call Condor Spread Option Strategy

Short 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
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
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
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.

SHORT CALL LADDER

SHORT CALL CONDOR SPREAD