put ladder definition
Short Put Ladder is made up of writing an At The Money (or slightly ITM or OTM) Put Option, buying an equivalent amount of a lower strike price Out Of The Money Put Option and then buying yet another equivalent amount of an even lower strike price out of the money put option.s such, in a Short Put Ladder Spread, options traders usually buy the middle strike price two strike prices lower than the short leg for stocks with strike prices at $1 interval or one strike price lower for stocks with strike prices at $5 interval, in order to obtain a more balanced risk profile. Lower Strike Price.