CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG GUTS
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..	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs LONG GUTS - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG GUTS
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	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG GUTS
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy 1 ITM Call, Buy 1 ITM Put
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

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

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG GUTS
Similar Strategies	Butterfly spreads	Short Put Ladder, Strip, Strap
Disadvantage	• Potential profit is lower or limited.	• More commission involved than simply buying call or put option. • Expensive.
Advantages	• The potential of loss is limited.	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.