SHORT PUT LADDER	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

SHORT PUT LADDER Vs CALL BACKSPREAD - Details

	SHORT PUT LADDER	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	SHORT PUT LADDER	CALL BACKSPREAD
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 the investor expects the price of the stock to rise in the future.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell 1 ITM Call, BUY 2 OTM Call
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

SHORT PUT LADDER Vs CALL BACKSPREAD - Risk & Reward

	SHORT PUT LADDER	CALL BACKSPREAD
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SHORT PUT LADDER Vs CALL BACKSPREAD - Strategy Pros & Cons

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