CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT LADDER
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..	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SHORT PUT LADDER - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT LADDER
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	6	3
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SHORT PUT LADDER - When & How to use ?

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT LADDER
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	This strategy is implemented when a trader is slightly bearish on the market.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SHORT PUT LADDER - Risk & Reward

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT LADDER
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	Net Debit paid for the strategy.	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SHORT PUT LADDER - Strategy Pros & Cons

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT LADDER
Similar Strategies	Butterfly spreads	Strap, Strip
Disadvantage	• Potential profit is lower or limited.	• Best to use when you are confident about movement of market. • Small margin required.
Advantages	• The potential of loss is limited.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.