LONG PUT LADDER	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

LONG PUT LADDER Vs SHORT CALL - Details

	LONG PUT LADDER	SHORT CALL
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	1
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	Strike Price of Short Call + Premium Received

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

	LONG PUT LADDER	SHORT CALL
Market View	Neutral	Bearish
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Sell or Write Call Option
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	Strike Price of Short Call + Premium Received

LONG PUT LADDER Vs SHORT CALL - Risk & Reward

	LONG PUT LADDER	SHORT CALL
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Max Profit = Premium Received
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

LONG PUT LADDER Vs SHORT CALL - Strategy Pros & Cons

	LONG PUT LADDER	SHORT CALL
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Covered Put, Covered Calls
Disadvantage	• Unlimited risk. • Margin required.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.