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Comparision (LONG CALL LADDER VS LONG CALL CONDOR SPREAD)

 

Compare Strategies

  LONG CALL LADDER LONG CALL CONDOR SPREAD
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 Condor Spread Option Strategy 

This strategy is implemented when a trader is bearish on the volatility and expects the market to move sideways. Using Call Options of the same expiry date, he will buy one Deep ITM Call Option, sell 1 ITM Call Option, sell 1 OTM Call Option, buy 1 Deep OTM Call Option. The risk and reward both are limited due to offsetting of long and short positions. For t ..

LONG CALL LADDER Vs LONG CALL CONDOR SPREAD - Details

LONG CALL LADDER LONG CALL CONDOR SPREAD
Market View Neutral Neutral
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 3 4
Strategy Level Advance Advance
Reward Profile Unlimited Limited
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 = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium

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

LONG CALL LADDER LONG CALL CONDOR SPREAD
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 works well when you expect the price of the underlying asset to be range bound in the coming days.
Action Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option
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 = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium

LONG CALL LADDER Vs LONG CALL CONDOR SPREAD - Risk & Reward

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

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

LONG CALL LADDER LONG CALL CONDOR SPREAD
Similar Strategies Short Strangle (Sell Strangle), Short Straddle (Sell Straddle) Long Put Butterfly, Short Call Condor, Short Strangle
Disadvantage • Unlimited risk. • Margin required. • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
Advantages • Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit. • Capable to generate profit even if there is low volatility in the market. • This strategy is associated with limited risk and limited profit. • Wider profit zone.

LONG CALL LADDER

LONG CALL CONDOR SPREAD