SHORT CALL LADDER	RISK REVERSAL
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..	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod .. Read more..

SHORT CALL LADDER Vs RISK REVERSAL - Details

	SHORT CALL LADDER	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Unlimited
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	Premium received - Put Strike Price

SHORT CALL LADDER Vs RISK REVERSAL - When & How to use ?

	SHORT CALL LADDER	RISK REVERSAL
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	This strategy work when an investor want to hedge their position by buying a put option and selling a 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	Premium received - Put Strike Price

SHORT CALL LADDER Vs RISK REVERSAL - Risk & Reward

	SHORT CALL LADDER	RISK REVERSAL
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

SHORT CALL LADDER Vs RISK REVERSAL - Strategy Pros & Cons

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