CHRISTMAS TREE SPREAD WITH PUT OPTION	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs STRAP - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRAP
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	6	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRAP
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs STRAP - Risk & Reward

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRAP
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	UNLIMITED
Maximum Loss Scenario	Net Debit paid for the strategy.	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	STRAP
Similar Strategies	Butterfly spreads	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Potential profit is lower or limited.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• The potential of loss is limited.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.