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

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

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

	RATIO PUT WRITE	CHRISTMAS TREE SPREAD WITH PUT OPTION
Market View	Neutral	Bearish
When to use?	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	This Strategy is used when an investor wants potential returns.
Action	Sell 2 ATM Puts	Buying one ATM, Selling 3 Puts, Buying one more OTM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit	Lowest strike prices + the half premium – premium paid

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

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

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

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