LONG CALL LADDER	CALL BACKSPREAD
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. Read more..	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..

LONG CALL LADDER Vs CALL BACKSPREAD - Details

	LONG CALL LADDER	CALL BACKSPREAD
Market View	Neutral	Bullish
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	Limited
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	LONG CALL LADDER	CALL BACKSPREAD
Market View	Neutral	Bullish
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 used when the investor expects the price of the stock to rise in the future.
Action	Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call	Sell 1 ITM Call, BUY 2 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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG CALL LADDER Vs CALL BACKSPREAD - Risk & Reward

	LONG CALL LADDER	CALL BACKSPREAD
Maximum Profit Scenario	Strike Price of Lower Strike Short Call - Strike Price of Long Call - Net Premium Paid - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Price of Underlying - Upper Breakeven Price + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG CALL LADDER Vs CALL BACKSPREAD - Strategy Pros & Cons

	LONG CALL LADDER	CALL BACKSPREAD
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	-
Disadvantage	• 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.	• Unlimited profit potential.