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Bull call ladders
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FOT-August 2007-2
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This position is more flexible and less risky than a ratio spread.
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Detailed Description
This discussion explains why some traders prefer bull call ladders to call ratio spreads, describes how these positions behave, and suggests ways to reduce their risk. The examples use calls but you can also create these positions with puts. The main difference involves directional risk: call ladders and ratio spreads face losses above the market, while put spreads face losses below it.
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