SHORT PUT LADDER	LONG COMBO
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..	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

SHORT PUT LADDER Vs LONG COMBO - Details

	SHORT PUT LADDER	LONG COMBO
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	Unlimited
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	Call Strike + Net Premium

SHORT PUT LADDER Vs LONG COMBO - When & How to use ?

	SHORT PUT LADDER	LONG COMBO
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell OTM Put Option, Buy OTM 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	Call Strike + Net Premium

SHORT PUT LADDER Vs LONG COMBO - Risk & Reward

	SHORT PUT LADDER	LONG COMBO
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

SHORT PUT LADDER Vs LONG COMBO - Strategy Pros & Cons

	SHORT PUT LADDER	LONG COMBO
Similar Strategies	Strap, Strip	-
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.