CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL BUTTERFLY
About Strategy	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..	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 CALL OPTION STRATEGY Vs SHORT CALL BUTTERFLY - Details

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

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL BUTTERFLY
Market View	Bullish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	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.
Action	• Buy 1 call , • Sell 3 calls, • Buy 2 calls	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

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

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

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	SHORT CALL BUTTERFLY
Similar Strategies	CHRISTMAS TREE SPREAD WITH PUT OPTION	Long Straddle, Long Call Butterfly
Disadvantage	• Potential profit is lower or limited.	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
Advantages	• The potential of loss is limited.	• 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.