A vertical spread strategy which benefits from both high and low volatilities. However, the strategy is naturally bullish. In essence, it is an extension to the bear call spread, where another call option is bought at a higher exercise price. This composite set-up exposes an investor to capped risk but, thanks to the extra long call, it opens up uncapped reward potential in case an underlying stock price soars.

In more detail, a bear call ladder is normally established by selling an in-the-money call, buying an at-the-money call, and buying an out-of-the-money call of the same underlying and expiration date but with higher a exercise price. The bear call ladder is also known as a short call ladder.