# Ladders

## **Call Ladder**

<figure><img src="https://4105275983-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FveNlPcq5FcdKaOERYyrV%2Fuploads%2FHxwAeez3QaFn6HLlNoit%2Fimage.png?alt=media&#x26;token=0bd94e9d-5849-4d34-b63f-efdddebed7cd" alt="" width="356"><figcaption></figcaption></figure>

A long call ladder consists of buying a call at one strike and selling 2 calls at each of two higher strikes. &#x20;

User earns premium to enter the trade but posts collateral; ( collateral requirement can get mitigated by entering into a long farther out of the money call option; a call condor ).

## **Put Ladder**

<figure><img src="https://4105275983-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FveNlPcq5FcdKaOERYyrV%2Fuploads%2F5CmoaBN7CtqODStuN5MN%2Fimage.png?alt=media&#x26;token=46542c99-6c76-4f13-b7ed-1dfbe7468ca1" alt="" width="353"><figcaption></figcaption></figure>

A long put ladder consists of buying a put at one strike and selling 2 put at each of two lower strikes. &#x20;

User earns premium to enter the trade but posts collateral; ( collateral requirement can get mitigated by entering into a long farther out of the money put option; a put condor ).