SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are 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..

SHORT PUT BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
Type (CE/PE)	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 Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Lowest strike prices + the half premium – premium paid

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

	SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	This Strategy is used when an investor wants potential returns.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Lowest strike prices + the half premium – premium paid

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

	SHORT PUT 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 Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

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

	SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Short Condor, Reverse Iron Condor	Butterfly spreads
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.	• Potential profit is lower or limited.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• The potential of loss is limited.