PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..	Christmas Tree Spread with Call Option Strategy This 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 .. Read more..

PUT BACKSPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Advance	Advance
Reward Profile		Limited
Risk Profile		Limited
Breakeven Point		Lowest strike prices + premium paid – the half premium.

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

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Bearish	Bullish
When to use?		This Strategy is used when an investor wants potential returns.
Action		• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point		Lowest strike prices + premium paid – the half premium.

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

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario		Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario		Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

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

	PUT BACKSPREAD	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies		CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage		• Potential profit is lower or limited.
Advantages		• The potential of loss is limited.