SHORT PUT LADDER	RATIO PUT WRITE
About Strategy	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. .. Read more..

SHORT PUT LADDER Vs RATIO PUT WRITE - Details

	SHORT PUT LADDER	RATIO PUT WRITE
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts
Risk Profile	Limited	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

SHORT PUT LADDER Vs RATIO PUT WRITE - When & How to use ?

	SHORT PUT LADDER	RATIO PUT WRITE
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell 2 ATM Puts
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

SHORT PUT LADDER Vs RATIO PUT WRITE - Risk & Reward

	SHORT PUT LADDER	RATIO PUT WRITE
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Price of Underlying - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs RATIO PUT WRITE - Strategy Pros & Cons

	SHORT PUT LADDER	RATIO PUT WRITE
Similar Strategies	Strap, Strip	Short Strangle and Short Straddle
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Potential loss is higher than gain. • Limited profit.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.