> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/option-strategies/call-ladder.md).
# Call Ladder
A Call Ladder is a combination of an in-the-money call, an at-the-money call and another call strike further out-of-the-money of the same expiration date.
## Long Call Ladder
**Payoff Diagram:**
**Direction Assumption:** Moderately Bullish
**Maximum Profit:** Limited
**Maximum Loss:** Unlimited
**Breakeven Price:** \
• On the lower end, Long Call strike plus the net debit paid.\
• On the higher end, 2 Short Call strikes minus Long Call strike minus the net debit paid.
**Theta:** \
• If underlying price is trading either below the lower breakeven or above the higher breakeven price -> Negative\
• If underlying price is trading between the two breakeven prices -> Positive
**Volatility:** Negative
## Short Call Ladder
**Payoff Diagram:**
**Direction Assumption:** Moderately Bearish
**Maximum Profit:** Limited
**Maximum Loss:** Unlimited
**Breakeven Price:** \
• On the lower end, Short Call strike plus the net credit received.\
• On the higher end, 2 Long Call strikes minus Short Call strike minus the net credit received.
**Theta:** \
• If underlying price is trading either below the lower breakeven or above the higher breakeven price -> Positive\
• If underlying price is trading between the two breakeven prices -> Negative
**Volatility:** Positive
