STRAP	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	STRAP	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	4
Strategy Level	Beginners	Advance
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Limited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Lowest strike prices + premium paid – the half premium.

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

	STRAP	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	This Strategy is used when an investor wants potential returns.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Lowest strike prices + premium paid – the half premium.

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

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

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

	STRAP	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• Potential profit is lower or limited.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• The potential of loss is limited.