STRIP	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the 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..

STRIP Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	STRIP	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	3	6
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Lowest strike prices + the half premium – premium paid

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

	STRIP	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Lowest strike prices + the half premium – premium paid

STRIP Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	STRIP	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	STRIP	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Strap, Short Put Ladder	Butterfly spreads
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• Potential profit is lower or limited.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• The potential of loss is limited.