CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO PUT SPREAD
About Strategy	Christmas Tree Spread with Call Option Strategy This Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur Read more..	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. Read more..

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs RATIO PUT SPREAD - Details

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs RATIO PUT SPREAD - When & How to use ?

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO PUT SPREAD
Market View	Bullish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	• Buy 1 call , • Sell 3 calls, • Buy 2 calls	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs RATIO PUT SPREAD - Risk & Reward

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO PUT SPREAD
Maximum Profit Scenario	Equal middle strike price – lower strike price – the premium	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs RATIO PUT SPREAD - Strategy Pros & Cons

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO PUT SPREAD
Similar Strategies	CHRISTMAS TREE SPREAD WITH PUT OPTION	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Potential profit is lower or limited.	• Unlimited potential risk. • Limited profit.
Advantages	• The potential of loss is limited.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.