> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/option-strategies/put-ladder.md).

# Put Ladder

## Long Put Ladder

**Payoff Diagram:**

<figure><img src="/files/iAbs9R4DqFCcGnrYukSO" alt=""><figcaption></figcaption></figure>

**Direction Assumption:** Moderately Bearish

**Maximum Profit:** Limited

**Maximum Loss:** Unlimited

**Breakeven Price:** \
• On the lower end, Long Put strike plus the net debit paid.\
• On the higher end, 2 Short Put strikes minus Long Put strike minus the net debit paid.

**Theta:** \
• If underlying price is trading either below the lower breakeven or above the higher breakeven price -> Negative\
• If underlying price is trading between the two breakeven prices -> Positive

**Volatility:** Negative

## Short Put Ladder

**Payoff Diagram:**

<div data-full-width="true"><figure><img src="/files/odFRvXPrUFsS9wrkQuN4" alt=""><figcaption></figcaption></figure></div>

**Direction Assumption:** Moderately Bullish

**Maximum Profit:** Limited

**Maximum Loss:** Unlimited

**Breakeven Price:** \
• On the lower end, Short Put strike plus the net credit received.\
• On the higher end, 2 Long Put strikes minus Short Put strike minus the net credit received.

**Theta:** \
• If underlying price is trading either below the lower breakeven or above the higher breakeven price -> Positive\
• If underlying price is trading between the two breakeven prices -> Negative

**Volatility:** Positive