SHORT PUT LADDER	PUT 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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

SHORT PUT LADDER Vs PUT BACKSPREAD - Details

	SHORT PUT LADDER	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited
Risk Profile	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

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

	SHORT PUT LADDER	PUT BACKSPREAD
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.
Action	Sell ITM Put Option, Buying 1 ATM & 1 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

SHORT PUT LADDER Vs PUT BACKSPREAD - Risk & Reward

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

SHORT PUT LADDER Vs PUT BACKSPREAD - Strategy Pros & Cons

	SHORT PUT LADDER	PUT 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.