Compare Strategies
SHORT CALL LADDER | SHORT CALL LADDER | |
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About Strategy |
Short Call Ladder Option StrategyThis 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:
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Short Call Ladder Option StrategyThis 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:
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SHORT CALL LADDER Vs SHORT CALL LADDER - Details
SHORT CALL LADDER | SHORT CALL LADDER | |
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Market View | Neutral | 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 | 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 | 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 |
SHORT CALL LADDER Vs SHORT CALL LADDER - When & How to use ?
SHORT CALL LADDER | SHORT CALL LADDER | |
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Market View | Neutral | Neutral |
When to use? | This strategy is implemented when a trader is moderately bullish on the market, and volatility | This strategy is implemented when a trader is moderately bullish on the market, and volatility |
Action | Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call | Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 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 | 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 |
SHORT CALL LADDER Vs SHORT CALL LADDER - Risk & Reward
SHORT CALL LADDER | SHORT CALL LADDER | |
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Maximum Profit Scenario | Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received | Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received |
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 Short Call - Net Premium Received + Commissions Paid |
Risk | Limited | Limited |
Reward | Unlimited | Unlimited |
SHORT CALL LADDER Vs SHORT CALL LADDER - Strategy Pros & Cons
SHORT CALL LADDER | SHORT CALL LADDER | |
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Similar Strategies | Short Put Ladder, Strip, Strap | Short Put Ladder, Strip, Strap |
Disadvantage | • Unlimited risk. • Margin required. | • Unlimited risk. • Margin required. |
Advantages | • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss. | • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss. |