SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< Read more..	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 PUT BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

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

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

	SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	This Strategy is used when an investor wants potential returns.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Lowest strike prices + premium paid – the half premium.

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

	SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

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

	SHORT PUT BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Short Condor, Reverse Iron Condor	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.	• Potential profit is lower or limited.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	• The potential of loss is limited.