CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR CALL SPREAD
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..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs BEAR CALL SPREAD - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR CALL SPREAD
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	6	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price of Short Call + Net Premium Received

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR CALL SPREAD
Market View	Bearish	Bearish
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price of Short Call + Net Premium Received

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR CALL SPREAD
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	BEAR CALL SPREAD
Similar Strategies	Butterfly spreads	Bear Put Spread, Bull Call Spread
Disadvantage	• Potential profit is lower or limited.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• The potential of loss is limited.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.