SHORT PUT LADDER	RISK REVERSAL
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..	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod .. Read more..

SHORT PUT LADDER Vs RISK REVERSAL - Details

	SHORT PUT LADDER	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
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	Premium received - Put Strike Price

SHORT PUT LADDER Vs RISK REVERSAL - When & How to use ?

	SHORT PUT LADDER	RISK REVERSAL
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
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	Premium received - Put Strike Price

SHORT PUT LADDER Vs RISK REVERSAL - Risk & Reward

	SHORT PUT LADDER	RISK REVERSAL
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

SHORT PUT LADDER Vs RISK REVERSAL - Strategy Pros & Cons

	SHORT PUT LADDER	RISK REVERSAL
Similar Strategies	Strap, Strip	-
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	Unlimited Risk.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	Unlimited profit.