RISK REVERSAL	SHORT PUT LADDER
About Strategy	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod Read more..	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..

RISK REVERSAL Vs SHORT PUT LADDER - Details

	RISK REVERSAL	SHORT PUT LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	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

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

	RISK REVERSAL	SHORT PUT LADDER
Market View	Bullish	Neutral
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	This strategy is implemented when a trader is slightly bearish on the market.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Premium received - Put Strike Price	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

RISK REVERSAL Vs SHORT PUT LADDER - Risk & Reward

	RISK REVERSAL	SHORT PUT LADDER
Maximum Profit Scenario	You have unlimited profit potential to the upside.	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs SHORT PUT LADDER - Strategy Pros & Cons

	RISK REVERSAL	SHORT PUT LADDER
Similar Strategies	-	Strap, Strip
Disadvantage	Unlimited Risk.	• Best to use when you are confident about movement of market. • Small margin required.
Advantages	Unlimited profit.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.