Build a Bear Put Ladder Strategy
What is a bear put ladder?
NeutralLimited ProfitNearly Unlimited Loss
A bear put ladder is an extension to the bear put spread, as it now includes another short put. The name suggests it is a bearish strategy, but it is actually neutral to slightly bearish since it has a nearly uncapped loss on the downside.
Time is helpful when the position is profitable, and harmful when it isn't. Decreasing volatility is helpful and increases the chance of staying in the profitable range.
(also known as: Long Put Ladder)
- Sell a put at strike A
- Sell a put at strike B
- Buy a put at strike C