Bull Put Ladder option strategy
Bull Put Ladder is a bearish strategy. It ensures uncapped reward if the stock tanks.
Payoff at expiry
Nifty, lot size 65 · Nifty future 25,151 · 17 Nov 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| SELL | ITM Put | 25,200 | 1 | 65 | ₹138.35 |
| BUY | ATM Put | 25,150 | 1 | 65 | ₹111.53 |
| BUY | OTM Put | 25,100 | 1 | 65 | ₹88.25 |
How it works
- Sell 1 ITM put at the 25,200 strike for ₹138.35, collecting the premium.
- Buy 1 ATM put at the 25,150 strike for ₹111.53, paying the premium.
- Buy 1 OTM put at the 25,100 strike for ₹88.25, paying the premium.
- You pay a net ₹3,993 upfront for the position. Your maximum loss is ₹7,243.
Below 24,989 you profit, and profit grows as Nifty falls.
Above 24,989 you lose, up to ₹7,243.
Set-up: Sell 1 lot ITM Put, Buy 1 lot OTM Put and Buy 1 lot deeper OTM Put 1 lot.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 23,650 | −6% | +₹87,007 |
| 24,400 | −3% | +₹38,257 |
| 24,900 | −1% | +₹5,757 |
| 25,150 | Unchanged | −₹7,243 |
| 25,400 | +1% | −₹3,993 |
| 25,900 | +3% | −₹3,993 |
| 26,650 | +6% | −₹3,993 |
How the Greeks affect it
When to use
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.
- 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.
Things to watch
- Time decay is generally harmful when the position is losing money, particularly around the middle strike.
Bull Put Ladder: questions
What is a Bull Put Ladder strategy?
Bull Put Ladder is a bearish strategy. It ensures uncapped reward if the stock tanks.
When should you use a Bull Put Ladder?
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.
How do you set up a Bull Put Ladder?
Sell 1 lot ITM Put, Buy 1 lot OTM Put and Buy 1 lot deeper OTM Put 1 lot.
What is the maximum profit of a Bull Put Ladder?
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.
What is the maximum loss of a Bull Put Ladder?
Maximum Loss on the trade is limited to the difference between the higher and middle strike prices plus your interim risk.
What is the breakeven of a Bull Put Ladder?
With Nifty at 25,151, the example on this page breaks even at 24,989 at expiry.