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Ladder builder

Automatically spread a position across strikes and expiries to smooth yield.

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.

Near expiryMid expiryFar expiry
Further strike
Middle strike
Closer strike
A position laddered across three expiries and three strikes.

Payoff shape at expiry · not to scale

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.