PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
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 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..

PROTECTIVE COLLAR Vs CHRISTMAS TREE SPREAD WITH PUT OPTION - Details

	PROTECTIVE COLLAR	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	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Lowest strike prices + the half premium – premium paid

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

	PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
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	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Lowest strike prices + the half premium – premium paid

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

	PROTECTIVE COLLAR	CHRISTMAS TREE SPREAD WITH PUT OPTION
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Equal middle strike price – higher 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 PUT OPTION - Strategy Pros & Cons

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