RISK REVERSAL	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod 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..

RISK REVERSAL Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	RISK REVERSAL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	6
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Lowest strike prices + the half premium – premium paid

RISK REVERSAL Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - When & How to use ?

	RISK REVERSAL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	This Strategy is used when an investor wants potential returns.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Premium received - Put Strike Price	Lowest strike prices + the half premium – premium paid

RISK REVERSAL Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	RISK REVERSAL	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Unlimited	Limited

RISK REVERSAL Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Strategy Pros & Cons

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