Compare Strategies
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | SHORT CALL CONDOR SPREAD | |
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About Strategy |
Christmas Tree Spread with Call Option StrategyThis Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur |
Short Call Condor Spread Option StrategyShort Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs SHORT CALL CONDOR SPREAD - Details
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | SHORT CALL CONDOR SPREAD | |
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Market View | Bullish | Volatile |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 4 | 4 |
Strategy Level | Advance | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Lowest strike prices + premium paid – the half premium. | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs SHORT CALL CONDOR SPREAD - When & How to use ?
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | SHORT CALL CONDOR SPREAD | |
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Market View | Bullish | Volatile |
When to use? | This Strategy is used when an investor wants potential returns. | This strategy is used when an investor expect the price of the underlying stock to be very volatile. |
Action | • Buy 1 call , • Sell 3 calls, • Buy 2 calls | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option |
Breakeven Point | Lowest strike prices + premium paid – the half premium. | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs SHORT CALL CONDOR SPREAD - Risk & Reward
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | SHORT CALL CONDOR SPREAD | |
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Maximum Profit Scenario | Equal middle strike price – lower strike price – the premium | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
Maximum Loss Scenario | Net Debit paid for the strategy. | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid |
Risk | Limited | Limited |
Reward | Limited | Limited |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs SHORT CALL CONDOR SPREAD - Strategy Pros & Cons
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | SHORT CALL CONDOR SPREAD | |
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Similar Strategies | CHRISTMAS TREE SPREAD WITH PUT OPTION | Short Strangle |
Disadvantage | • Potential profit is lower or limited. | • Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
Advantages | • The potential of loss is limited. | • This strategy allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone. |