CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRADDLE
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 Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs LONG STRADDLE - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRADDLE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	6	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRADDLE
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy Call Option, Buy Put Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRADDLE
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Net Debit paid for the strategy.	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRADDLE
Similar Strategies	Butterfly spreads	Bear Put Spread
Disadvantage	• Potential profit is lower or limited.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	• The potential of loss is limited.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.