LONG PUT LADDER	SHORT PUT
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 Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

LONG PUT LADDER Vs SHORT PUT - Details

	LONG PUT LADDER	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
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 - Premium

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

	LONG PUT LADDER	SHORT PUT
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Sell Put 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 - Premium

LONG PUT LADDER Vs SHORT PUT - Risk & Reward

	LONG PUT LADDER	SHORT PUT
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

LONG PUT LADDER Vs SHORT PUT - Strategy Pros & Cons

	LONG PUT LADDER	SHORT PUT
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Bull Put Spread, Short Starddle
Disadvantage	• Unlimited risk. • Margin required.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.