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Comparision (LONG CALL LADDER VS LONG CALL LADDER)

 

Compare Strategies

  LONG CALL LADDER LONG CALL LADDER
About Strategy

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.

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.

LONG CALL LADDER Vs LONG CALL LADDER - Details

LONG CALL LADDER LONG CALL LADDER
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 Unlimited Unlimited
Breakeven Point 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 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

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

LONG CALL LADDER LONG CALL LADDER
Market View Neutral Neutral
When to use? 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. 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 Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call
Breakeven Point 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 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

LONG CALL LADDER Vs LONG CALL LADDER - Risk & Reward

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

LONG CALL LADDER Vs LONG CALL LADDER - Strategy Pros & Cons

LONG CALL LADDER LONG CALL LADDER
Similar Strategies Short Strangle (Sell Strangle), Short Straddle (Sell Straddle) Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage • Unlimited risk. • Margin required. • Unlimited risk. • Margin required.
Advantages • Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit. • Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.

LONG CALL LADDER

LONG CALL LADDER