CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE 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..	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs PROTECTIVE COLLAR - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE COLLAR
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	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Purchase Price of Underlying + Net Premium Paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE COLLAR
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Purchase Price of Underlying + Net Premium Paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE COLLAR
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Net Debit paid for the strategy.	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	PROTECTIVE COLLAR
Similar Strategies	Butterfly spreads	Bull Put Spread, Bull Call Spread
Disadvantage	• Potential profit is lower or limited.	• Potential profit is lower or limited.
Advantages	• The potential of loss is limited.	The Risk is limited.