CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT 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..	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SHORT STRADDLE - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT 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	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
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 SHORT STRADDLE - When & How to use ?

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT STRADDLE
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell Call Option, Sell 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 SHORT STRADDLE - Risk & Reward

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT STRADDLE
Similar Strategies	Butterfly spreads	Short Strangle
Disadvantage	• Potential profit is lower or limited.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	• The potential of loss is limited.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .