An extension to a bear put spread. It is a highly risky option trading strategy which suits expectations of low volatility in the short term. The long put ladder is usually constructed by buying an in-the-money put, selling an at-the-money put, and selling an out-of-the-money put with a lower strike price. The three put options should have the same underlying asset and expiration date. The combined position assumes unlimited risk if the underlying experiences sharp declines. The long put ladder is also known as a bear put ladder.
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