SHORT PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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..

SHORT PUT Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	SHORT PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	6
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Lowest strike prices + the half premium – premium paid

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

	SHORT PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This Strategy is used when an investor wants potential returns.
Action	Sell Put Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Strike Price - Premium	Lowest strike prices + the half premium – premium paid

SHORT PUT Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	SHORT PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Net Debit paid for the strategy.
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	SHORT PUT	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Bull Put Spread, Short Starddle	Butterfly spreads
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Potential profit is lower or limited.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• The potential of loss is limited.