STRATEGY EXPLAINER · 2:36

Long Put Ladder Strategy Explainer Video

The Long Put Ladder, or bear put ladder, is a limited profit, limited risk strategy in options trading that is employed when the options trader thinks that the underlying security will experience little volatility in the near term. To setup the Long Put Ladder, the options trader purchases an in-the-money put, sells an at-the-money put and sells another lower strike out-of-the-money put of the same underlying security and expiration date.