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  • Call Ladder
  • Put Ladder

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  1. Ithaca App
  2. Trading
  3. Dynamic Option Strategies

Ladders

PreviousRisk ReversalNextStraddles & Strangles

Last updated 1 year ago

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Call Ladder

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

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

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

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 ).