Compare Strategies
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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About Strategy |
Christmas Tree Spread with Call Option StrategyThis Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur |
Christmas Tree Spread with Call Option StrategyThis Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur .. |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Market View | Bullish | Bullish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 4 | 4 |
Strategy Level | Advance | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Lowest strike prices + premium paid – the half premium. | Lowest strike prices + premium paid – the half premium. |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Market View | Bullish | Bullish |
When to use? | This Strategy is used when an investor wants potential returns. | This Strategy is used when an investor wants potential returns. |
Action | • Buy 1 call , • Sell 3 calls, • Buy 2 calls | • Buy 1 call , • Sell 3 calls, • Buy 2 calls |
Breakeven Point | Lowest strike prices + premium paid – the half premium. | Lowest strike prices + premium paid – the half premium. |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Maximum Profit Scenario | Equal middle strike price – lower strike price – the premium | Equal middle strike price – lower strike price – the premium |
Maximum Loss Scenario | Net Debit paid for the strategy. | Net Debit paid for the strategy. |
Risk | Limited | Limited |
Reward | Limited | Limited |
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons
CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY | |
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Similar Strategies | CHRISTMAS TREE SPREAD WITH PUT OPTION | CHRISTMAS TREE SPREAD WITH PUT OPTION |
Disadvantage | • Potential profit is lower or limited. | • Potential profit is lower or limited. |
Advantages | • The potential of loss is limited. | • The potential of loss is limited. |