CALL BACKSPREAD	LONG PUT 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 Put Ladder Option Strategy  Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited. Risk:< .. Read more..

CALL BACKSPREAD Vs LONG PUT LADDER - Details

	CALL BACKSPREAD	LONG PUT LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
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 = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

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

	CALL BACKSPREAD	LONG PUT 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 can be implemented when a trader is slightly bearish on the market and volatility.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

CALL BACKSPREAD Vs LONG PUT LADDER - Risk & Reward

	CALL BACKSPREAD	LONG PUT LADDER
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs LONG PUT LADDER - Strategy Pros & Cons

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