CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r Read more..	Christmas Tree Spread with Call Option Strategy This 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 .. Read more..

CALL BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	4
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lowest strike prices + premium paid – the half premium.

CALL BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bullish	Bullish
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This Strategy is used when an investor wants potential returns.
Action	Sell 1 ITM Call, BUY 2 OTM Call	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lowest strike prices + premium paid – the half premium.

CALL BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	-	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage		• Potential profit is lower or limited.
Advantages	• Unlimited profit potential.	• The potential of loss is limited.