LONG PUT LADDER	STRIP
About Strategy	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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

LONG PUT LADDER Vs STRIP - Details

	LONG PUT LADDER	STRIP
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	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	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	LONG PUT LADDER	STRIP
Market View	Neutral	Neutral
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	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	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

LONG PUT LADDER Vs STRIP - Risk & Reward

	LONG PUT LADDER	STRIP
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

LONG PUT LADDER Vs STRIP - Strategy Pros & Cons

	LONG PUT LADDER	STRIP
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Strap, Short Put Ladder
Disadvantage	• Unlimited risk. • Margin required.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.