IRON BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Iron Butterfly Option Strategy  This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements. A trader will buy 1 OTM Put Option, sell 1 ATM Put Option, sell 1 ATM Call Option, buy 1 OTM Call Option. Due to offsetting of long and short positions, this strategy bags limited profit with limited 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..

IRON BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	IRON BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	4	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Lowest strike prices + the half premium – premium paid

IRON BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - When & How to use ?

	IRON BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Lowest strike prices + the half premium – premium paid

IRON BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	IRON BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

IRON BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Strategy Pros & Cons

	IRON BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Butterfly spreads
Disadvantage	• Large commissions involved. • Probability of losses are higher.	• Potential profit is lower or limited.
Advantages	• Less amount of capital investment, steady income with low risk. • Traders can predict maximum loss and profit. • Versatile strategy, investors can transform position into bear call spread or bull put spread easily.	• The potential of loss is limited.