Bull Call Ladder

### What is a Bull Call Ladder? This one I only recommend to traders who really understand what they're signing up for. You take a Bull Call Spread and add a third leg — selling one more call at an even higher strike. That extra premium reduces your cost, sometimes turning the whole trade into a net credit. Here's the part beginners miss: that third short call has no long call above it to cap your risk. If the stock rockets past your highest strike, your losses become theoretically unlimited, same as a naked short call above that point. This is a trade for when you expect a moderate move up and think a massive breakout is unlikely — not a trade for high-conviction momentum names.