Expand model tag support: add GLM-5.1, simplify Anthropic IDs, scan tags anywhere in message
- Flink update_bars debouncing - update_bars subscription idempotency bugfix - Price decimal correction bugfix of previous commit - Add GLM-5.1 model tag alongside renamed GLM-5 - Use short Anthropic model IDs (sonnet/haiku/opus) instead of full version strings - Allow @tags anywhere in message content, not just at start - Return hasOtherContent flag instead of trimmed rest string - Only trigger greeting stream when tag has no other content - Update workspace knowledge base references to platform/workspace and platform/shapes - Hierarchical knowledge base catalog - 151 Trading Strategies knowledge base articles - Shapes knowledge base article - MutateShapes tool instead of workspace patch
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description: "A bearish-adjusted strategy selling a near-ATM put at K1 and buying two lower OTM puts at K2 and K3, arising when a bull put spread is adjusted for a stock that trades lower."
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tags: [options, hedging, bearish, ladder]
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---
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# Bull Put Ladder
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**Section**: 2.15 | **Asset Class**: Options | **Type**: Hedging
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## Overview
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The bull put ladder is a vertical spread consisting of a short put at K1 (near ATM), a long put at K2 (OTM), and a long put at K3 (further OTM, K3 < K2 < K1). A bull put ladder typically arises when a bull put spread goes wrong (the stock trades lower), so the trader buys another OTM put at K3 to adjust the position to bearish.
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## Construction
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- Sell 1 put option at strike K1 (near ATM)
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- Buy 1 put option at strike K2 (OTM, K2 < K1)
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- Buy 1 put option at strike K3 (further OTM, K3 < K2), same expiry
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Net debit or credit H
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## Payoff Profile
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f_T = (K3 - S_T)+ + (K2 - S_T)+ - (K1 - S_T)+ - H
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- Upper breakeven: S*_up = K1 + H (if H < 0, net credit)
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- Lower breakeven: S*_down = K3 + K2 - K1 - H
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- Max profit: P_max = K3 + K2 - K1 - H (if S_T -> 0)
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- Max loss: L_max = K1 - K2 + H (in zone [K2, K1])
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## Key Conditions / Signals
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- Bearish adjustment to a bull put spread that has moved against the trader
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- Profits if the stock continues to fall significantly below K3
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- Low volatility near K1 environment after adjustment is undesirable
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## Notes
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The bull put ladder converts a bullish income strategy into a bearish capital gain strategy. The additional long put at K3 limits the maximum loss zone and creates profit on a sharp decline.
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