LONG PUT LADDER	PUT 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..	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 Vs PUT BACKSPREAD - Details

	LONG PUT LADDER	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	2
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

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

	LONG PUT LADDER	PUT BACKSPREAD
Market View	Neutral	Bearish
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

LONG PUT LADDER Vs PUT BACKSPREAD - Risk & Reward

	LONG PUT LADDER	PUT BACKSPREAD
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	Unlimited	Limited
Reward	Limited	Unlimited

LONG PUT LADDER Vs PUT BACKSPREAD - Strategy Pros & Cons

	LONG PUT LADDER	PUT 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.