LONG PUT LADDER	LONG GUTS
About Strategy	Long Put Ladder Option Strategy  Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited. Risk:< Read more..	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

LONG PUT LADDER Vs LONG GUTS - Details

	LONG PUT LADDER	LONG GUTS
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	LONG PUT LADDER	LONG GUTS
Market View	Neutral	Neutral
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

LONG PUT LADDER Vs LONG GUTS - Risk & Reward

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

LONG PUT LADDER Vs LONG GUTS - Strategy Pros & Cons

	LONG PUT LADDER	LONG GUTS
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Short Put Ladder, Strip, Strap
Disadvantage	• Unlimited risk. • Margin required.	• More commission involved than simply buying call or put option. • Expensive.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.