LONG GUTS	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< 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 GUTS Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	LONG GUTS	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Lowest strike prices + premium paid – the half premium.

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

	LONG GUTS	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 ITM Call, Buy 1 ITM Put	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Lowest strike prices + premium paid – the half premium.

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

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

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

	LONG GUTS	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Short Put Ladder, Strip, Strap	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• More commission involved than simply buying call or put option. • Expensive.	• Potential profit is lower or limited.
Advantages	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.	• The potential of loss is limited.