SHORT PUT	LONG PUT LADDER
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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..

SHORT PUT Vs LONG PUT LADDER - Details

	SHORT PUT	LONG PUT LADDER
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price - Premium	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

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

	SHORT PUT	LONG PUT LADDER
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.
Action	Sell Put Option	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put
Breakeven Point	Strike Price - Premium	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

SHORT PUT Vs LONG PUT LADDER - Risk & Reward

	SHORT PUT	LONG PUT LADDER
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT PUT Vs LONG PUT LADDER - Strategy Pros & Cons

	SHORT PUT	LONG PUT LADDER
Similar Strategies	Bull Put Spread, Short Starddle	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Unlimited risk. • Margin required.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.