LONG CALL LADDER	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

LONG CALL LADDER Vs THE COLLAR - Details

	LONG CALL LADDER	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	3	3
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	Price of Features - Call Premium + Put Premium

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

	LONG CALL LADDER	THE COLLAR
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call	Buy Underlying, Buy 1 ATM Put Option, Sell 1 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	Price of Features - Call Premium + Put Premium

LONG CALL LADDER Vs THE COLLAR - Risk & Reward

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

LONG CALL LADDER Vs THE COLLAR - Strategy Pros & Cons

	LONG CALL LADDER	THE COLLAR
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Call Spread, Bull Put Spread
Disadvantage	• Unlimited risk. • Margin required.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.