CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG 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..	Long Put Butterfly Option Strategy  The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future. This strategy involves sale of 2 ATM Put Options, buy 1 ITM and 1 OTM Put Option. The risk and reward are limited. Read more..

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG 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 Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG PUT BUTTERFLY
Market View	Bearish	Neutral
When to use?	This Strategy is used when an investor wants potential returns.	The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future.
Action	Buying one ATM, Selling 3 Puts, Buying one more OTM Put	Buy 1 OTM Put, Sell 2 ATM Puts, Buy 1 ITM Put
Breakeven Point	Lowest strike prices + the half premium – premium paid	Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG PUT BUTTERFLY
Maximum Profit Scenario	Equal middle strike price – higher strike price – the premium	Strike Price of Higher Strike Long Put - Strike Price of Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario	Net Debit paid for the strategy.	When Price of Underlying <= Strike Price of Lower Strike Long Put OR Price of Underlying >= Strike Price of Higher Strike Long Put
Risk	Limited	Limited
Reward	Limited	Limited

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

	CHRISTMAS TREE SPREAD WITH PUT OPTION	LONG PUT BUTTERFLY
Similar Strategies	Butterfly spreads	Iron Condors, Iron Butterfly
Disadvantage	• Potential profit is lower or limited.	• Risk is higher than reward. • When the underlying price is in between the two breakeven points, time decay hurts the position.
Advantages	• The potential of loss is limited.	• Limited maximum loss. • Unlimited profit potential, risk only limited to loss of premium. • Benefits from low volatility.