LONG PUT LADDER	PROTECTIVE PUT
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..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

LONG PUT LADDER Vs PROTECTIVE PUT - Details

	LONG PUT LADDER	PROTECTIVE PUT
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	1
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	Purchase Price of Underlying + Premium Paid

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

	LONG PUT LADDER	PROTECTIVE PUT
Market View	Neutral	Bullish
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Buy 1 ATM Put
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	Purchase Price of Underlying + Premium Paid

LONG PUT LADDER Vs PROTECTIVE PUT - Risk & Reward

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

LONG PUT LADDER Vs PROTECTIVE PUT - Strategy Pros & Cons

	LONG PUT LADDER	PROTECTIVE PUT
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Long Call, Call Backspread
Disadvantage	• Unlimited risk. • Margin required.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.