CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO CALL 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 Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. This strategy is used by a trader who is 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 CALL WRITE - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO CALL WRITE
Market View	Bearish	Neutral
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	Unlimited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO CALL WRITE
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is used by a trader who is 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 Calls
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO CALL 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 - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	RATIO CALL WRITE
Similar Strategies	Butterfly spreads	Variable Ratio Write
Disadvantage	• Potential profit is lower or limited.	• Potential loss is higher than gain. • Limited profit.
Advantages	• The potential of loss is limited.