CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	REVERSE IRON BUTTERFLY
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..	Reverse Iron Butterfly Option Strategy Reverse Iron Butterfly as the name suggests is the opposite of Iron Butterfly. In Reverse Iron Butterfly, a trader is bullish on volatility and expects the market to make significant move in the near future in either directions. Here a trader will buy 1 ATM Call Option, sell 1 OTM Call Option, buy 1 ATM Put Option, sell 1 OTM Put Option. This strategy also bags lim .. Read more..

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs REVERSE IRON BUTTERFLY - Details

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

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs REVERSE IRON BUTTERFLY - When & How to use ?

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	REVERSE IRON BUTTERFLY
Market View	Bullish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used when a trader is bullish on volatility and expects the market to make significant move in the near future in either directions.
Action	• Buy 1 call , • Sell 3 calls, • Buy 2 calls	Sell 1 OTM Put, Buy 1 ATM Put, Buy 1 ATM Call, Sell 1 OTM Call
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs REVERSE IRON BUTTERFLY - Risk & Reward

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	REVERSE IRON BUTTERFLY
Maximum Profit Scenario	Equal middle strike price – lower strike price – the premium	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs REVERSE IRON BUTTERFLY - Strategy Pros & Cons

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	REVERSE IRON BUTTERFLY
Similar Strategies	CHRISTMAS TREE SPREAD WITH PUT OPTION	Short Put Butterfly, Short Condor
Disadvantage	• Potential profit is lower or limited.	• Potential loss is higher than gain, complex strategy. • Not suitable for beginners.
Advantages	• The potential of loss is limited.	• Able to profit whether stocks move in either direction up or down. • This strategy can be used by option traders who cannot use credit spreads. • Predictable maximum loss and profits, volatile strategy.