LONG PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Long Put Butterfly Option Strategy  The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future. This strategy involves sale of 2 ATM Put Options, buy 1 ITM and 1 OTM Put Option. The risk and reward are limited. Read more..	Christmas Tree Spread with Puts Option Strategy This Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one put at strike price D, skipping strike price C, writes three calls at strike price B, and buying two calls at strike price A for same expiration dates for neutral to bearish forecast. An investor used this strategy to potential returns .. Read more..

LONG PUT BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	LONG PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	4	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid	Lowest strike prices + the half premium – premium paid

LONG PUT BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - When & How to use ?

	LONG PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 OTM Put, Sell 2 ATM Puts, Buy 1 ITM Put	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid	Lowest strike prices + the half premium – premium paid

LONG PUT BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	LONG PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Strike Price of Higher Strike Long Put - Strike Price of Short Put - Net Premium Paid - Commissions Paid	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	When Price of Underlying <= Strike Price of Lower Strike Long Put OR Price of Underlying >= Strike Price of Higher Strike Long Put	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

LONG PUT BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Strategy Pros & Cons

	LONG PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Iron Condors, Iron Butterfly	Butterfly spreads
Disadvantage	• Risk is higher than reward. • When the underlying price is in between the two breakeven points, time decay hurts the position.	• Potential profit is lower or limited.
Advantages	• Limited maximum loss. • Unlimited profit potential, risk only limited to loss of premium. • Benefits from low volatility.	• The potential of loss is limited.