SHORT CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the 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 CALL BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	6
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Lowest strike prices + the half premium – premium paid

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

	SHORT CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This Strategy is used when an investor wants potential returns.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Lowest strike prices + the half premium – premium paid

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

	SHORT CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	The profit is limited to the net premium received.	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

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

	SHORT CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Long Straddle, Long Call Butterfly	Butterfly spreads
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Potential profit is lower or limited.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	• The potential of loss is limited.