CALL BACKSPREAD	SHORT 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..	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

CALL BACKSPREAD Vs SHORT PUT LADDER - Details

	CALL BACKSPREAD	SHORT 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	Unlimited
Risk Profile	Limited	Limited
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 Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

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

	CALL BACKSPREAD	SHORT 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 is implemented when a trader is slightly bearish on the market.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
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 Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

CALL BACKSPREAD Vs SHORT PUT LADDER - Risk & Reward

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

CALL BACKSPREAD Vs SHORT PUT LADDER - Strategy Pros & Cons

	CALL BACKSPREAD	SHORT PUT LADDER
Similar Strategies	-	Strap, Strip
Disadvantage		• Best to use when you are confident about movement of market. • Small margin required.
Advantages	• Unlimited profit potential.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.