Long Put Ladder

Long put ladder is a limited profit, unlimited risk strategy which can also be seen as an extension of the bear put spread by selling another lower striking put. This trade involves buying an in-the-money put, selling an at-the-money put and selling another lower strike out-of-the-money put of the same underlying security and expiration date. The motive behind initiating this strategy is to rightly predict the stock price till expiration and gain from time value.