COVERED PUT	SHORT CALL LADDER
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the Read more..	Short Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..

COVERED PUT Vs SHORT CALL LADDER - Details

	COVERED PUT	SHORT CALL LADDER
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

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

	COVERED PUT	SHORT CALL LADDER
Market View	Bearish	Neutral
When to use?	The Covered Put works well when the market is moderately Bearish.	This strategy is implemented when a trader is moderately bullish on the market, and volatility
Action	Sell Underlying Sell OTM Put Option	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Futures Price + Premium Received	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

COVERED PUT Vs SHORT CALL LADDER - Risk & Reward

	COVERED PUT	SHORT CALL LADDER
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED PUT Vs SHORT CALL LADDER - Strategy Pros & Cons

	COVERED PUT	SHORT CALL LADDER
Similar Strategies	Bear Put Spread, Bear Call Spread	Short Put Ladder, Strip, Strap
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Unlimited risk. • Margin required.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.