CHRISTMAS TREE SPREAD WITH PUT OPTION	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs CALL BACKSPREAD - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	CALL BACKSPREAD
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	6	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	CALL BACKSPREAD
Market View	Bearish	Bullish
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used when the investor expects the price of the stock to rise in the future.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Lowest strike prices + the half premium – premium paid	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	CALL BACKSPREAD
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Net Debit paid for the strategy.	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

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

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