PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This 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 COLLAR Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	PROTECTIVE COLLAR	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	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Lowest strike prices + premium paid – the half premium.

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

	PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.	This Strategy is used when an investor wants potential returns.
Action	• Short 1 Call Option, • Long 1 Put Option	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Lowest strike prices + premium paid – the half premium.

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

	PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

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

	PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Bull Put Spread, Bull Call Spread	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• Potential profit is lower or limited.	• Potential profit is lower or limited.
Advantages	The Risk is limited.	• The potential of loss is limited.