Compare Strategies
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | DIAGONAL BULL CALL SPREAD | |
---|---|---|
![]() |
![]() |
|
About Strategy |
Christmas Tree Spread with Call Option StrategyThis 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 |
Diagonal Bull Call Spread Option StrategyThis strategy is implemented by a trader when he is neutral – moderately bullish in the near-month contract and bullish in the mid-month contract. It involves sale of 1 Near-Month OTM Call Option and buying of 1 Mid Month ITM Call Option. Risk:
|
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs DIAGONAL BULL CALL SPREAD - Details
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | DIAGONAL BULL CALL SPREAD | |
---|---|---|
Market View | Bullish | Bullish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 4 | 2 |
Strategy Level | Advance | Beginners |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Lowest strike prices + premium paid – the half premium. |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs DIAGONAL BULL CALL SPREAD - When & How to use ?
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | DIAGONAL BULL CALL SPREAD | |
---|---|---|
Market View | Bullish | Bullish |
When to use? | This Strategy is used when an investor wants potential returns. | |
Action | • Buy 1 call , • Sell 3 calls, • Buy 2 calls | Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call |
Breakeven Point | Lowest strike prices + premium paid – the half premium. |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs DIAGONAL BULL CALL SPREAD - Risk & Reward
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | DIAGONAL BULL CALL SPREAD | |
---|---|---|
Maximum Profit Scenario | Equal middle strike price – lower strike price – the premium | |
Maximum Loss Scenario | Net Debit paid for the strategy. | |
Risk | Limited | Limited |
Reward | Limited | Limited |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | DIAGONAL BULL CALL SPREAD | |
---|---|---|
Similar Strategies | CHRISTMAS TREE SPREAD WITH PUT OPTION | Bull Put Spread |
Disadvantage | • Potential profit is lower or limited. | |
Advantages | • The potential of loss is limited. |