CHRISTMAS TREE SPREAD WITH PUT OPTION	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs STRIP - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRIP
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	6	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRIP
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy 1 ATM Call, Buy 2 ATM Puts
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRIP
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Net Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRIP
Similar Strategies	Butterfly spreads	Strap, Short Put Ladder
Disadvantage	• Potential profit is lower or limited.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	• The potential of loss is limited.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.