COVERED PUT	SHORT PUT 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 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..

COVERED PUT Vs SHORT PUT LADDER - Details

	COVERED PUT	SHORT PUT LADDER
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option) + Underlying	PE (Put 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 = 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

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

	COVERED PUT	SHORT PUT 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 slightly bearish on the market.
Action	Sell Underlying Sell OTM Put Option	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Futures Price + Premium Received	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

COVERED PUT Vs SHORT PUT LADDER - Risk & Reward

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

COVERED PUT Vs SHORT PUT LADDER - Strategy Pros & Cons

	COVERED PUT	SHORT PUT LADDER
Similar Strategies	Bear Put Spread, Bear Call Spread	Strap, Strip
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Best to use when you are confident about movement of market. • Small 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.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.