LONG PUT LADDER	COVERED COMBINATION
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..	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

LONG PUT LADDER Vs COVERED COMBINATION - Details

	LONG PUT LADDER	COVERED COMBINATION
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
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 + Strike Price of Short Put - Net Premium Received) / 2

LONG PUT LADDER Vs COVERED COMBINATION - When & How to use ?

	LONG PUT LADDER	COVERED COMBINATION
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 mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Sell 1 OTM Call, Sell 1 OTM 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 + Strike Price of Short Put - Net Premium Received) / 2

LONG PUT LADDER Vs COVERED COMBINATION - Risk & Reward

	LONG PUT LADDER	COVERED COMBINATION
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Limited	Limited

LONG PUT LADDER Vs COVERED COMBINATION - Strategy Pros & Cons

	LONG PUT LADDER	COVERED COMBINATION
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Stock Repair Strategy
Disadvantage	• Unlimited risk. • Margin required.	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.