SHORT PUT LADDER	SHORT PUT
About Strategy	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

SHORT PUT LADDER Vs SHORT PUT - Details

	SHORT PUT LADDER	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Strike Price - Premium

SHORT PUT LADDER Vs SHORT PUT - When & How to use ?

	SHORT PUT LADDER	SHORT PUT
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Strike Price - Premium

SHORT PUT LADDER Vs SHORT PUT - Risk & Reward

	SHORT PUT LADDER	SHORT PUT
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs SHORT PUT - Strategy Pros & Cons

	SHORT PUT LADDER	SHORT PUT
Similar Strategies	Strap, Strip	Bull Put Spread, Short Starddle
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.