SHORT STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if 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 STRANGLE Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT STRANGLE	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	2	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Lowest strike prices + the half premium – premium paid

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

	SHORT STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	This Strategy is used when an investor wants potential returns.
Action	Sell OTM Call, Sell OTM Put	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Lowest strike prices + the half premium – premium paid

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

	SHORT STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Maximum Profit = Net Premium Received	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	SHORT STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Short Straddle, Long Strangle	Butterfly spreads
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Potential profit is lower or limited.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• The potential of loss is limited.