CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
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 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..

CALL BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	6
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 + the half premium – premium paid

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

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
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	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Lowest strike prices + the half premium – premium paid

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

	CALL BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Equal middle strike price – higher 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 PUT OPTION - Strategy Pros & Cons

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