SHORT PUT LADDER	SHORT CALL
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 Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

SHORT PUT LADDER Vs SHORT CALL - Details

	SHORT PUT LADDER	SHORT CALL
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	1
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	Strike Price of Short Call + Premium Received

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

	SHORT PUT LADDER	SHORT CALL
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell or Write Call 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 Short Call + Premium Received

SHORT PUT LADDER Vs SHORT CALL - Risk & Reward

	SHORT PUT LADDER	SHORT CALL
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Max Profit = Premium Received
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs SHORT CALL - Strategy Pros & Cons

	SHORT PUT LADDER	SHORT CALL
Similar Strategies	Strap, Strip	Covered Put, Covered Calls
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.