LONG PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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..

LONG PUT Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	LONG PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	6
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	Lowest strike prices + the half premium – premium paid

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

	LONG PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bearish	Bearish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This Strategy is used when an investor wants potential returns.
Action	Buy Put Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Strike Price of Long Put - Premium Paid	Lowest strike prices + the half premium – premium paid

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

	LONG PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	LONG PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Protective Call, Short Put	Butterfly spreads
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Potential profit is lower or limited.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• The potential of loss is limited.