SHORT PUT LADDER	COVERED 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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

SHORT PUT LADDER Vs COVERED PUT - Details

	SHORT PUT LADDER	COVERED PUT
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option) + Underlying
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	Futures Price + Premium Received

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

	SHORT PUT LADDER	COVERED PUT
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	The Covered Put works well when the market is moderately Bearish.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell Underlying Sell OTM 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	Futures Price + Premium Received

SHORT PUT LADDER Vs COVERED PUT - Risk & Reward

	SHORT PUT LADDER	COVERED PUT
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs COVERED PUT - Strategy Pros & Cons

	SHORT PUT LADDER	COVERED PUT
Similar Strategies	Strap, Strip	Bear Put Spread, Bear Call Spread
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.