CHRISTMAS TREE SPREAD WITH PUT OPTION	SYNTHETIC LONG 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..	Synthetic Long Call Option Strategy A trader is bullish in nature for short term, but also fearful about the downside risk associated with it. Here, a trader wants to hold an underlying asset either in physical form like in case of commodities or demat (electronic) form in case of stocks. But he is always exposed to downside risk and in order to mitigate his losses, .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SYNTHETIC LONG CALL - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	6	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	Lowest strike prices + the half premium – premium paid	Underlying Price + Put Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SYNTHETIC LONG CALL
Market View	Bearish	Bullish
When to use?	This Strategy is used when an investor wants potential returns.	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy 1 ATM Put or OTM Put
Breakeven Point	Lowest strike prices + the half premium – premium paid	Underlying Price + Put Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SYNTHETIC LONG CALL
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SYNTHETIC LONG CALL
Similar Strategies	Butterfly spreads	Protective Put, Long Call
Disadvantage	• Potential profit is lower or limited.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
Advantages	• The potential of loss is limited.	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.