SHORT PUT LADDER	COVERED COMBINATION
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..	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

SHORT PUT LADDER Vs COVERED COMBINATION - Details

	SHORT PUT LADDER	COVERED COMBINATION
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
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	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

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

	SHORT PUT LADDER	COVERED COMBINATION
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell 1 OTM Call, Sell 1 OTM Put
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	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

SHORT PUT LADDER Vs COVERED COMBINATION - Risk & Reward

	SHORT PUT LADDER	COVERED COMBINATION
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs COVERED COMBINATION - Strategy Pros & Cons

	SHORT PUT LADDER	COVERED COMBINATION
Similar Strategies	Strap, Strip	Stock Repair Strategy
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.