CHRISTMAS TREE SPREAD WITH PUT OPTION	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs THE COLLAR - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	THE COLLAR
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	6	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Price of Features - Call Premium + Put Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	THE COLLAR
Market View	Bearish	Bullish
When to use?	This Strategy is used when an investor wants potential returns.	It should be used only in case where trader is certain about the bearish market view.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Price of Features - Call Premium + Put Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	THE COLLAR
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received
Maximum Loss Scenario	Net Debit paid for the strategy.	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	THE COLLAR
Similar Strategies	Butterfly spreads	Call Spread, Bull Put Spread
Disadvantage	• Potential profit is lower or limited.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• The potential of loss is limited.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.