SHORT PUT LADDER	SHORT STRANGLE
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..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

SHORT PUT LADDER Vs SHORT STRANGLE - Details

	SHORT PUT LADDER	SHORT STRANGLE
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
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	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

	SHORT PUT LADDER	SHORT STRANGLE
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Sell OTM Call, Sell OTM Put
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	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

SHORT PUT LADDER Vs SHORT STRANGLE - Risk & Reward

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

SHORT PUT LADDER Vs SHORT STRANGLE - Strategy Pros & Cons

	SHORT PUT LADDER	SHORT STRANGLE
Similar Strategies	Strap, Strip	Short Straddle, Long Strangle
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.