SHORT GUTS	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < 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 GUTS Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT GUTS	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	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Lowest strike prices + the half premium – premium paid

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

	SHORT GUTS	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.	This Strategy is used when an investor wants potential returns.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Lowest strike prices + the half premium – premium paid

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

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

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

	SHORT GUTS	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Butterfly spreads
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• Potential profit is lower or limited.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	• The potential of loss is limited.