CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO CALL SPREAD
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..	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is .. Read more..

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs RATIO CALL SPREAD - Details

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO CALL SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO CALL SPREAD
Market View	Bullish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used by trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited since he is selling two calls.
Action	• Buy 1 call , • Sell 3 calls, • Buy 2 calls	Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point	Lowest strike prices + premium paid – the half premium.	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO CALL SPREAD
Maximum Profit Scenario	Equal middle strike price – lower strike price – the premium	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY	RATIO CALL SPREAD
Similar Strategies	CHRISTMAS TREE SPREAD WITH PUT OPTION	Variable Ratio Write
Disadvantage	• Potential profit is lower or limited.	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• The potential of loss is limited.	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.