SHORT STRANGLE	LONG CALL LADDER
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if 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..

SHORT STRANGLE Vs LONG CALL LADDER - Details

	SHORT STRANGLE	LONG CALL LADDER
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	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

SHORT STRANGLE Vs LONG CALL LADDER - When & How to use ?

	SHORT STRANGLE	LONG CALL LADDER
Market View	Neutral	Neutral
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	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 OTM Call, Sell OTM Put	Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	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

SHORT STRANGLE Vs LONG CALL LADDER - Risk & Reward

	SHORT STRANGLE	LONG CALL LADDER
Maximum Profit Scenario	Maximum Profit = Net Premium Received	Strike Price of Lower Strike Short Call - Strike Price of Long Call - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Price of Underlying - Upper Breakeven Price + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Limited	Unlimited

SHORT STRANGLE Vs LONG CALL LADDER - Strategy Pros & Cons

	SHORT STRANGLE	LONG CALL LADDER
Similar Strategies	Short Straddle, Long Strangle	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Unlimited risk. • Margin required.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.