CALL BACKSPREAD	LONG CALL LADDER
About Strategy	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..	Long Call Ladder Option Strategy  Long Call Ladder Strategy is an extension to Bull Call Spread Strategy. A trader will be slightly bullish about the market, in this strategy but bearish over volatility. It involves buying of an ITM Call Option and sale of 1 ATM & 1 OTM Call Options. However, the risk associated with this strategy is unlimited and reward is limited. Read more..

CALL BACKSPREAD Vs LONG CALL LADDER - Details

	CALL BACKSPREAD	LONG CALL LADDER
Market View	Bullish	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	Unlimited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Total Strike Prices of Short Calls - Strike Price of Long Call - Net Premium Paid, Lower Breakeven Point = Strike Price of Long Call + Net Premium Paid

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

	CALL BACKSPREAD	LONG CALL LADDER
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This Strategy is an extension to Bull Call Spread Strategy. A trader will be slightly bullish about the market, in this strategy but bearish over volatility.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Total Strike Prices of Short Calls - Strike Price of Long Call - Net Premium Paid, Lower Breakeven Point = Strike Price of Long Call + Net Premium Paid

CALL BACKSPREAD Vs LONG CALL LADDER - Risk & Reward

	CALL BACKSPREAD	LONG CALL LADDER
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Strike Price of Lower Strike Short Call - Strike Price of Long Call - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Price of Underlying - Upper Breakeven Price + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

CALL BACKSPREAD Vs LONG CALL LADDER - Strategy Pros & Cons

	CALL BACKSPREAD	LONG CALL LADDER
Similar Strategies	-	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage		• Unlimited risk. • Margin required.
Advantages	• Unlimited profit potential.	• Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.