CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR PUT SPREAD
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..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs BEAR PUT SPREAD - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR PUT SPREAD
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	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price of Long Put - Net Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR PUT SPREAD
Market View	Bearish	Bearish
When to use?	This Strategy is used when an investor wants potential returns.	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price of Long Put - Net Premium

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

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR PUT SPREAD
Similar Strategies	Butterfly spreads	Bear Call Spread, Bull Call Spread
Disadvantage	• Potential profit is lower or limited.	• Limited profit. • Early assignment risk.
Advantages	• The potential of loss is limited.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.