Bull Call Ladder option strategy
Bull Call Ladder is neutral to Bullish Strategy that offers good return but with higher risk. Strategy entails buying 1 ATM and selling two higher strike OTM call at different strike.
Payoff at expiry
Nifty, lot size 65 · Nifty future 25,151 · 17 Nov 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | ITM Call | 25,100 | 1 | 65 | ₹140.03 |
| SELL | ATM Call | 25,150 | 1 | 65 | ₹113.32 |
| SELL | OTM Call | 25,200 | 1 | 65 | ₹90.13 |
How it works
- Buy 1 ITM call at the 25,100 strike for ₹140.03, paying the premium.
- Sell 1 ATM call at the 25,150 strike for ₹113.32, collecting the premium.
- Sell 1 OTM call at the 25,200 strike for ₹90.13, collecting the premium.
- You receive a net ₹4,122 upfront for the position. Your maximum profit is ₹7,372.
Below 25,313 you profit, up to ₹7,372.
Above 25,313 you lose, and the loss keeps growing as Nifty rises.
Set-up: Buy 1 lot ITM Call, Sell 1 lot ATM and Sell 1 lot higher OTM.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 23,650 | −6% | +₹4,122 |
| 24,400 | −3% | +₹4,122 |
| 24,900 | −1% | +₹4,122 |
| 25,150 | Unchanged | +₹7,372 |
| 25,400 | +1% | −₹5,628 |
| 25,900 | +3% | −₹38,128 |
| 26,650 | +6% | −₹86,878 |
How the Greeks affect it
When to use
To execute a mildly bullish trade by buying 1 ATM call and selling two OTM Calls to reduce initial outflow.
- Bull Call Ladder is best executed in shorter term period to reduce possibility of uncapped risk if the underlying asset rises too much.
Things to watch
- Time decay is harmful to the position around the buy strike price and becomes advantageous around the highest strike price.
Bull Call Ladder: questions
What is a Bull Call Ladder strategy?
Bull Call Ladder is neutral to Bullish Strategy that offers good return but with higher risk. Strategy entails buying 1 ATM and selling two higher strike OTM call at different strike.
When should you use a Bull Call Ladder?
To execute a mildly bullish trade by buying 1 ATM call and selling two OTM Calls to reduce initial outflow.
How do you set up a Bull Call Ladder?
Buy 1 lot ITM Call, Sell 1 lot ATM and Sell 1 lot higher OTM.
What is the maximum profit of a Bull Call Ladder?
It is a Net debit strategy. Maximum Profit is difference between Middle strike and lower Strike Call less net initial outflow.
What is the maximum loss of a Bull Call Ladder?
Maximum Loss is unlimited if the stock moves above highest strike and second break even.
What is the breakeven of a Bull Call Ladder?
With Nifty at 25,151, the example on this page breaks even at 25,313 at expiry.