SHORT CALL LADDER	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

SHORT CALL LADDER Vs CALL BACKSPREAD - Details

	SHORT CALL LADDER	CALL BACKSPREAD
Market View	Neutral	Bullish
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT CALL LADDER Vs CALL BACKSPREAD - When & How to use ?

	SHORT CALL LADDER	CALL BACKSPREAD
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Sell 1 ITM Call, BUY 2 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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT CALL LADDER Vs CALL BACKSPREAD - Risk & Reward

	SHORT CALL LADDER	CALL BACKSPREAD
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SHORT CALL LADDER Vs CALL BACKSPREAD - Strategy Pros & Cons

	SHORT CALL LADDER	CALL BACKSPREAD
Similar Strategies	Short Put Ladder, Strip, Strap	-
Disadvantage	• Unlimited risk. • Margin required.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Unlimited profit potential.