Bull Call Ladder

This is a vertical spread consisting of a long position in (usually) a close to ATM call option with a strike price K1 , a short position in an OTM call option with a strike price K2, and a short position in another OTM call option with a higher strike price K3 . A bull call ladder is a bull call spread financed by selling another OTM call option (with the strike price K3). This adjusts the trader’s outlook from bullish (bull call spread) to conservatively bullish or even non-directional (with an expectation of low volatility).