RATIO CALL SPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is 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..

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

	RATIO CALL SPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received	Lowest strike prices + premium paid – the half premium.

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

	RATIO CALL SPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is selling two calls.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 ITM Call, Sell 2 OTM Calls	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received	Lowest strike prices + premium paid – the half premium.

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

	RATIO CALL SPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	RATIO CALL SPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Variable Ratio Write	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• Unlimited potential loss. • Complex strategy with limited profit.	• Potential profit is lower or limited.
Advantages	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.	• The potential of loss is limited.