Tuesday, December 2, 2008

Advanced Option Trading Strategies: Bear Call Ladder Strategy

Bear Call Ladder Strategy:
A bear call ladder strategy is is a bear call spread with the additional purchase of a long call position further out of the money (OTM). Sometimes a bear call ladder is implemented when a call spread goes against the trade and the position is adjusted to become bullish.

Below is the risk profile for a bear call ladder option strategy:

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