LONG PUT LADDER	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

LONG PUT LADDER Vs CALL BACKSPREAD - Details

	LONG PUT LADDER	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	3
Strategy Level	Advance	Advance
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	LONG PUT LADDER	CALL BACKSPREAD
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 used when the investor expects the price of the stock to rise in the future.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Sell 1 ITM Call, BUY 2 OTM Call
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

LONG PUT LADDER Vs CALL BACKSPREAD - Risk & Reward

	LONG PUT LADDER	CALL BACKSPREAD
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

LONG PUT LADDER Vs CALL BACKSPREAD - Strategy Pros & Cons

	LONG PUT LADDER	CALL BACKSPREAD
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.	• Unlimited profit potential.