LONG PUT	SHORT PUT LADDER
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	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 PUT Vs SHORT PUT LADDER - Details

	LONG PUT	SHORT PUT LADDER
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	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

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

	LONG PUT	SHORT PUT LADDER
Market View	Bearish	Neutral
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This strategy is implemented when a trader is slightly bearish on the market.
Action	Buy Put Option	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Strike Price of Long Put - Premium Paid	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

LONG PUT Vs SHORT PUT LADDER - Risk & Reward

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

LONG PUT Vs SHORT PUT LADDER - Strategy Pros & Cons

	LONG PUT	SHORT PUT LADDER
Similar Strategies	Protective Call, Short Put	Strap, Strip
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Best to use when you are confident about movement of market. • Small margin required.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.