LONG CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho 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..

LONG CALL BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	LONG CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lowest strike prices + premium paid – the half premium.

LONG CALL BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?

	LONG CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	This Strategy is used when an investor wants potential returns.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Lowest strike prices + premium paid – the half premium.

LONG CALL BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward

	LONG CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Net Premium Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons

	LONG CALL BUTTERFLY	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	-	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	• Potential profit is lower or limited.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	• The potential of loss is limited.