CHRISTMAS TREE SPREAD WITH PUT OPTION	PUT 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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs PUT BACKSPREAD - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PUT BACKSPREAD
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	6	2
Strategy Level	Advance	Advance
Reward Profile	Limited
Risk Profile	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PUT BACKSPREAD
Market View	Bearish	Bearish
When to use?	This Strategy is used when an investor wants potential returns.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Lowest strike prices + the half premium – premium paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PUT BACKSPREAD
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium
Maximum Loss Scenario	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Unlimited

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

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