LONG PUT LADDER	CHRISTMAS TREE SPREAD WITH PUT OPTION
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..	Christmas Tree Spread with Puts Option Strategy This Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one put at strike price D, skipping strike price C, writes three calls at strike price B, and buying two calls at strike price A for same expiration dates for neutral to bearish forecast. An investor used this strategy to potential returns .. Read more..

LONG PUT LADDER Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	LONG PUT LADDER	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
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	Lowest strike prices + the half premium – premium paid

LONG PUT LADDER Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - When & How to use ?

	LONG PUT LADDER	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Buying one ATM, Selling 3 Puts, Buying one more 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	Lowest strike prices + the half premium – premium paid

LONG PUT LADDER Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	LONG PUT LADDER	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Limited	Limited

LONG PUT LADDER Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Strategy Pros & Cons

	LONG PUT LADDER	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Butterfly spreads
Disadvantage	• Unlimited risk. • Margin required.	• Potential profit is lower or limited.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• The potential of loss is limited.