CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	LONG COMBO
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..	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 CALL OPTION STRATEGY Vs LONG COMBO - Details

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	LONG COMBO
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Call Strike + Net Premium

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	LONG COMBO
Market View	Bullish	Bullish
When to use?	This Strategy is used when an investor wants potential returns.	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.
Action	• Buy 1 call , • Sell 3 calls, • Buy 2 calls	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Call Strike + Net Premium

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

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

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	LONG COMBO
Similar Strategies	CHRISTMAS TREE SPREAD WITH PUT OPTION	-
Disadvantage	• Potential profit is lower or limited.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	• The potential of loss is limited.	• 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.