SHORT CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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..

SHORT CALL Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Lowest strike prices + the half premium – premium paid

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

	SHORT CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bearish	Bearish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This Strategy is used when an investor wants potential returns.
Action	Sell or Write Call Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Strike Price of Short Call + Premium Received	Lowest strike prices + the half premium – premium paid

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

	SHORT CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Max Profit = Premium Received	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	SHORT CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Covered Put, Covered Calls	Butterfly spreads
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Potential profit is lower or limited.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• The potential of loss is limited.