Short Put Ladder

The short put ladder sells one put at the highest strike and buys puts at two lower strikes in the same expiration, leaving the position net long one put. It is usually opened for a credit, keeps that credit if the underlying stays above the top strike, and pays increasingly on a sharp decline below the lowest strike.

Loss is bounded and occurs in the band between the strikes. All three legs price from on demand bid, ask and previous close next to the underlying's last trade.