CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT BUTTERFLY
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 Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. Risk:< .. Read more..

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	6	4
Strategy Level	Advance	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT BUTTERFLY
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT BUTTERFLY
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.	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT BUTTERFLY
Similar Strategies	Butterfly spreads	Short Condor, Reverse Iron Condor
Disadvantage	• Potential profit is lower or limited.	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.
Advantages	• The potential of loss is limited.	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.