LONG COMBO	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received 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 COMBO Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	LONG COMBO	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	6
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium	Lowest strike prices + the half premium – premium paid

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

	LONG COMBO	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.	This Strategy is used when an investor wants potential returns.
Action	Sell OTM Put Option, Buy OTM Call Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Call Strike + Net Premium	Lowest strike prices + the half premium – premium paid

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

	LONG COMBO	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Unlimited	Limited

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

	LONG COMBO	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	-	Butterfly spreads
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Potential profit is lower or limited.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.	• The potential of loss is limited.