A ladder splits one position into several smaller ones at different strikes and expiries. Instead of one option expiring on one date at one strike, you hold a spread of them.
Why ladder
- Smoother yield. Options expire and roll on different dates, so premium is less lumpy.
- Less timing risk. A single bad expiry affects only part of the position.
- Strike diversity. Some legs sit closer to the money, some further out.
How the builder works
The ladder builder automatically spreads a position across strikes and expiries. Each rung is still fully collateralized on its own, and each is still a position NFT.