SHORT STRADDLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an 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 STRADDLE Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT STRADDLE	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 Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Lowest strike prices + the half premium – premium paid

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

	SHORT STRADDLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.	This Strategy is used when an investor wants potential returns.
Action	Sell Call Option, Sell Put Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Lowest strike prices + the half premium – premium paid

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

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

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

	SHORT STRADDLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Short Strangle	Butterfly spreads
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.	• Potential profit is lower or limited.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .	• The potential of loss is limited.