LONG STRADDLE	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc Read more..	Christmas Tree Spread with Call Option Strategy This Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur .. Read more..

LONG STRADDLE Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

	LONG STRADDLE	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Lowest strike prices + premium paid – the half premium.

LONG STRADDLE Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?

	LONG STRADDLE	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View	Neutral	Bullish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	This Strategy is used when an investor wants potential returns.
Action	Buy Call Option, Buy Put Option	• Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Lowest strike prices + premium paid – the half premium.

LONG STRADDLE Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward

	LONG STRADDLE	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Net Debit paid for the strategy.
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG STRADDLE Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons

	LONG STRADDLE	CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies	Bear Put Spread	CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	• Potential profit is lower or limited.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• The potential of loss is limited.