THE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op 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..

THE COLLAR Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	THE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	3	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Lowest strike prices + the half premium – premium paid

THE COLLAR Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - When & How to use ?

	THE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
When to use?	It should be used only in case where trader is certain about the bearish market view.	This Strategy is used when an investor wants potential returns.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Price of Features - Call Premium + Put Premium	Lowest strike prices + the half premium – premium paid

THE COLLAR Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

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

THE COLLAR Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Strategy Pros & Cons

	THE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Call Spread, Bull Put Spread	Butterfly spreads
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• Potential profit is lower or limited.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• The potential of loss is limited.