CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL
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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs LONG CALL - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	6	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price + Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL
Market View	Bearish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This Strategy is used when an investor wants potential returns.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buying Call option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike price + Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Net Debit paid for the strategy.	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG CALL
Similar Strategies	Butterfly spreads	Protective Put
Disadvantage	• Potential profit is lower or limited.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• The potential of loss is limited.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.