Ideas
.svg)
Intel Junction
Trade
Watchlist
Orders
Positions
Broker Access
Hot Keys
Alert Trigger Order (ATO)
Bracket Order
Target Stoploss Order
Add Broker
Track
Built-Up Breadth
Built-Up Scrip Symbol
Synopsis Futures OI
Built-Up Sectors
Top Stocks
Intraday Movers
Analyze
Charts/ Order & Trade
Multi Strike OI
O&T Watch List
Strategy Chart
Scan
Built-Up Scrip OI-Historical
Built-Up Sector Cycle
Built-Up Sector OI-Historical
Built-Up Scrip Cycle
Comparative Analysis
Tools
Optimizer Find Strategy
Optimizer Find Specific
Optimizer My Forecasts
Optimizer Constrains
Learn
Events
Webinars
Book a Session
Bull Put Ladder
bearishBull Put Ladder is a bearish strategy. It ensures uncapped reward if the stock tanks
Example:
| Instrument | Qty | Price |
|---|---|---|
| SELL NIFTY 30-Jun-26 25600 PE | 65 | 1517.9 |
| BUY NIFTY 30-Jun-26 24100 PE | 65 | 108.2 |
| BUY NIFTY 30-Jun-26 22600 PE | 65 | 1.85 |
When To Execute?
Strategy could be executed for a capital gain. The lower strike bought puts will have the effect of uncapping your profit potential; the higher strike sold puts will reduce the cost basis.
Trade
Sell 1 lot ITM Put, Buy 1 lot OTM Put and Buy 1 lot deeper OTM Put 1 lot
Advantages
Bull Put Ladder will be safest to choose as a medium to long term to expiration to allow the underlying asset to move and make the position profitable without time decay destroying the long options
Typically a Bull Put Ladder arises when a Bull Put Spread has gone wrong and the trader adjusts the position to become bearish
Disadvantages
Time decay is generally harmful when the position is losing money, particularly around the middle strike
Maximum Profit
It is a Net debit strategy. Maximum Profit is unlimited beyond lowest put strike. Your maximum reward on the trade is uncapped because you are buying more puts than you are selling.
Maximum Loss
Maximum Loss on the trade is limited to the difference between the higher and middle strike prices plus your interim risk.