SHORT PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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..

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

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

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

	SHORT PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bullish	Bullish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This Strategy is used when an investor wants potential returns.
Action	Sell Put Option	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Strike Price - Premium	Lowest strike prices + premium paid – the half premium.

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

	SHORT PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	SHORT PUT	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Bull Put Spread, Short Starddle	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Potential profit is lower or limited.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• The potential of loss is limited.