SHORT CALL LADDER	COVERED CALL
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..	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o .. Read more..

SHORT CALL LADDER Vs COVERED CALL - Details

	SHORT CALL LADDER	COVERED CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
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	Purchase Price of Underlying- Premium Received

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

	SHORT CALL LADDER	COVERED CALL
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	(Buy Underlying) (Sell OTM 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	Purchase Price of Underlying- Premium Received

SHORT CALL LADDER Vs COVERED CALL - Risk & Reward

	SHORT CALL LADDER	COVERED CALL
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT CALL LADDER Vs COVERED CALL - Strategy Pros & Cons

	SHORT CALL LADDER	COVERED CALL
Similar Strategies	Short Put Ladder, Strip, Strap	Bull Call Spread
Disadvantage	• Unlimited risk. • Margin required.	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.