CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL BUTTERFLY
About Strategy	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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs LONG CALL BUTTERFLY - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	6	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL BUTTERFLY
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL BUTTERFLY
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Net Debit paid for the strategy.	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL BUTTERFLY
Similar Strategies	Butterfly spreads	-
Disadvantage	• Potential profit is lower or limited.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• The potential of loss is limited.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.