RISK REVERSAL	LONG PUT LADDER
About Strategy	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod Read more..	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..

RISK REVERSAL Vs LONG PUT LADDER - Details

	RISK REVERSAL	LONG PUT LADDER
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Premium received - Put Strike Price	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

RISK REVERSAL Vs LONG PUT LADDER - When & How to use ?

	RISK REVERSAL	LONG PUT LADDER
Market View	Bullish	Neutral
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put
Breakeven Point	Premium received - Put Strike Price	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

RISK REVERSAL Vs LONG PUT LADDER - Risk & Reward

	RISK REVERSAL	LONG PUT LADDER
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

RISK REVERSAL Vs LONG PUT LADDER - Strategy Pros & Cons

	RISK REVERSAL	LONG PUT LADDER
Similar Strategies	-	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	Unlimited Risk.	• Unlimited risk. • Margin required.
Advantages	Unlimited profit.	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.