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Comparision (LONG PUT LADDER VS LONG PUT LADDER)

 

Compare Strategies

  LONG PUT LADDER LONG PUT LADDER
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:<

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:< ..

LONG PUT LADDER Vs LONG PUT LADDER - Details

LONG PUT LADDER LONG PUT LADDER
Market View Neutral Neutral
Type (CE/PE) PE (Put Option) PE (Put Option)
Number Of Positions 3 3
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 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

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

LONG PUT LADDER LONG PUT LADDER
Market View Neutral Neutral
When to use? This Strategy can be implemented when a trader is slightly bearish on the market and volatility. 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 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 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

LONG PUT LADDER Vs LONG PUT LADDER - Risk & Reward

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

LONG PUT LADDER Vs LONG PUT LADDER - Strategy Pros & Cons

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

LONG PUT LADDER

LONG PUT LADDER