PROTECTIVE CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The 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..

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

	PROTECTIVE CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Lowest strike prices + premium paid – the half premium.

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

	PROTECTIVE CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This Strategy is used when an investor wants potential returns.
Action	Buy 1 ATM Call	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Sale Price of Underlying + Premium Paid	Lowest strike prices + premium paid – the half premium.

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

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

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

	PROTECTIVE CALL	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Put Backspread, Long Put	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Potential profit is lower or limited.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.	• The potential of loss is limited.