CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE 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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs PROTECTIVE CALL - Details

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE CALL
Market View	Bearish	Bearish
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy 1 ATM Call
Breakeven Point	Lowest strike prices + the half premium – premium paid	Sale Price of Underlying + Premium Paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE CALL
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE CALL
Similar Strategies	Butterfly spreads	Put Backspread, Long Put
Disadvantage	• Potential profit is lower or limited.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• The potential of loss is limited.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.