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Comparision (CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY VS CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY)

 

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  CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
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

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 ..

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

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View Bullish Bullish
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. Lowest strike prices + premium paid – the half premium.

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

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View Bullish Bullish
When to use? This Strategy is used when an investor wants potential returns. This Strategy is used when an investor wants potential returns.
Action • Buy 1 call , • Sell 3 calls, • Buy 2 calls • Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point Lowest strike prices + premium paid – the half premium. Lowest strike prices + premium paid – the half premium.

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

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario Equal middle strike price – lower strike price – the premium Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario Net Debit paid for the strategy. Net Debit paid for the strategy.
Risk Limited Limited
Reward Limited Limited

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

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies CHRISTMAS TREE SPREAD WITH PUT OPTION CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage • Potential profit is lower or limited. • Potential profit is lower or limited.
Advantages • The potential of loss is limited. • The potential of loss is limited.

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY