LONG CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: 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 CALL Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

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

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

	LONG CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Bearish
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This Strategy is used when an investor wants potential returns.
Action	Buying Call option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Strike price + Premium	Lowest strike prices + the half premium – premium paid

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

	LONG CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Premium Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	LONG CALL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Protective Put	Butterfly spreads
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.	• Potential profit is lower or limited.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• The potential of loss is limited.