SHORT PUT LADDER	SHORT PUT BUTTERFLY
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..	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

SHORT PUT LADDER Vs SHORT PUT BUTTERFLY - Details

	SHORT PUT LADDER	SHORT PUT BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	4
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	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	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	SHORT PUT LADDER	SHORT PUT BUTTERFLY
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
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	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

SHORT PUT LADDER Vs SHORT PUT BUTTERFLY - Risk & Reward

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

SHORT PUT LADDER Vs SHORT PUT BUTTERFLY - Strategy Pros & Cons

	SHORT PUT LADDER	SHORT PUT BUTTERFLY
Similar Strategies	Strap, Strip	Short Condor, Reverse Iron Condor
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.