PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..	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..

PUT BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	6
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		Limited
Breakeven Point		Lowest strike prices + the half premium – premium paid

PUT BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - When & How to use ?

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Bearish	Bearish
When to use?		This Strategy is used when an investor wants potential returns.
Action		Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point		Lowest strike prices + the half premium – premium paid

PUT BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Risk & Reward

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario		Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario		Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Strategy Pros & Cons

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