CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL
About Strategy	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 Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

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

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

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL
Market View	Bullish	Bearish
When to use?	This Strategy is used when an investor wants potential returns.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	• Buy 1 call , • Sell 3 calls, • Buy 2 calls	Sell or Write Call Option
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Strike Price of Short Call + Premium Received

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL
Maximum Profit Scenario	Equal middle strike price – lower strike price – the premium	Max Profit = Premium Received
Maximum Loss Scenario	Net Debit paid for the strategy.	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL
Similar Strategies	CHRISTMAS TREE SPREAD WITH PUT OPTION	Covered Put, Covered Calls
Disadvantage	• Potential profit is lower or limited.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	• The potential of loss is limited.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.