LONG STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
About Strategy	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the Read more..	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 STRANGLE Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

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

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

	LONG STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This Strategy is used when an investor wants potential returns.
Action	Buy OTM Call Option, Buy OTM Put Option	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Lowest strike prices + the half premium – premium paid

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

	LONG STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Max Loss = Net Premium Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	LONG STRANGLE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Similar Strategies	Long Straddle, Short Strangle	Butterfly spreads
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	• Potential profit is lower or limited.
Advantages	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .	• The potential of loss is limited.