CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRANGLE
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 Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs LONG STRANGLE - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRANGLE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	6	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRANGLE
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG STRANGLE
Similar Strategies	Butterfly spreads	Long Straddle, Short Strangle
Disadvantage	• Potential profit is lower or limited.	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
Advantages	• The potential of loss is limited.	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .