LONG PUT LADDER	LONG 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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

LONG PUT LADDER Vs LONG PUT - Details

	LONG PUT LADDER	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
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	Strike Price of Long Put - Premium Paid

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

	LONG PUT LADDER	LONG PUT
Market View	Neutral	Bearish
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	Buy 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 of Long Put - Premium Paid

LONG PUT LADDER Vs LONG PUT - Risk & Reward

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

LONG PUT LADDER Vs LONG PUT - Strategy Pros & Cons

	LONG PUT LADDER	LONG PUT
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Protective Call, Short Put
Disadvantage	• Unlimited risk. • Margin required.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.