LONG PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< Read more..	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..

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

	LONG PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	Lowest strike prices + premium paid – the half premium.

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

	LONG PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bearish	Bullish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This Strategy is used when an investor wants potential returns.
Action	Buy Put Option	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Strike Price of Long Put - Premium Paid	Lowest strike prices + premium paid – the half premium.

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

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

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

	LONG PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Protective Call, Short Put	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Potential profit is lower or limited.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• The potential of loss is limited.