SHORT PUT LADDER	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

SHORT PUT LADDER Vs STRAP - Details

	SHORT PUT LADDER	STRAP
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	3
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
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 of Calls/Puts + (Net Premium Paid/2)

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

	SHORT PUT LADDER	STRAP
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Buy 2 ATM Call Option, Buy 1 ATM 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 of Calls/Puts + (Net Premium Paid/2)

SHORT PUT LADDER Vs STRAP - Risk & Reward

	SHORT PUT LADDER	STRAP
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	UNLIMITED
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SHORT PUT LADDER Vs STRAP - Strategy Pros & Cons

	SHORT PUT LADDER	STRAP
Similar Strategies	Strap, Strip	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.