Tuesday, December 2, 2008

Advanced Option Trading Strategies: Bull Put Ladder Strategy

Bull Put Ladder:
A bull put ladder is simply a bull put spread with the additional purchase of put at a lower strike price. The trader is long two puts and short a put option. The maximum risk is capped, but the maximum upside is unlimited. This might be considered a bearish strategy, but it is more accurately an advanced option strategy for income.

Below is the risk profile for a bull put ladder option strategy:


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