PUT BACKSPREAD	LONG PUT LADDER
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. 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..

PUT BACKSPREAD Vs LONG PUT LADDER - Details

	PUT BACKSPREAD	LONG PUT LADDER
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		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

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

	PUT BACKSPREAD	LONG PUT LADDER
Market View	Bearish	Neutral
When to use?		This Strategy can be implemented when a trader is slightly bearish on the market and volatility.
Action		Buy 1 ITM Put, Sell 1 ATM Put, 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

PUT BACKSPREAD Vs LONG PUT LADDER - Risk & Reward

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

PUT BACKSPREAD Vs LONG PUT LADDER - Strategy Pros & Cons

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