CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO PUT WRITE
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..	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs RATIO PUT WRITE - Details

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO PUT WRITE
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell 2 ATM Puts
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs RATIO PUT WRITE - Risk & Reward

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

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO PUT WRITE
Similar Strategies	Butterfly spreads	Short Strangle and Short Straddle
Disadvantage	• Potential profit is lower or limited.	• Potential loss is higher than gain. • Limited profit.
Advantages	• The potential of loss is limited.