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 22,650 · 6 Oct 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | ITM Call | 22,600 | 1 | 65 | ₹161.77 |
| SELL | ATM Call | 22,650 | 1 | 65 | ₹135.47 |
| SELL | OTM Call | 22,700 | 1 | 65 | ₹112.09 |
How it works
- Buy 1 ITM call at the 22,600 strike for ₹161.77, paying the premium.
- Sell 1 ATM call at the 22,650 strike for ₹135.47, collecting the premium.
- Sell 1 OTM call at the 22,700 strike for ₹112.09, collecting the premium.
- You receive a net ₹5,576 upfront for the position. Your maximum profit is ₹8,826.
Below 22,836 you profit, up to ₹8,826.
Above 22,836 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 |
|---|---|---|
| 21,300 | −6% | +₹5,576 |
| 21,950 | −3% | +₹5,576 |
| 22,400 | −1% | +₹5,576 |
| 22,650 | Unchanged | +₹8,826 |
| 22,900 | +1% | −₹4,174 |
| 23,350 | +3% | −₹33,424 |
| 24,000 | +6% | −₹75,674 |
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 22,650, the example on this page breaks even at 22,836 at expiry.