CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT
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 Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

CHRISTMAS TREE SPREAD WITH PUT OPTION Vs SHORT PUT - Details

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	6	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price - Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT
Market View	Bearish	Bullish
When to use?	This Strategy is used when an investor wants potential returns.	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Sell Put Option
Breakeven Point	Lowest strike prices + the half premium – premium paid	Strike Price - Premium

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Net Debit paid for the strategy.	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	SHORT PUT
Similar Strategies	Butterfly spreads	Bull Put Spread, Short Starddle
Disadvantage	• Potential profit is lower or limited.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	• The potential of loss is limited.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.