A Christmas tree is a complex options trading strategy achieved by buying and selling six call options with different strikes for a neutral to bullish forecast.
 | | Christmas Tree | | A Christmas tree is a complex options trading strategy achieved by buying and selling six call options with different strikes but the same expiration dates for a neutral to bullish forecast. This is actually a shortened name for a long Christmas tree with calls. The strategy is available long or short, bullish or bearish, and with puts or calls. Each strategy only involves one option type (calls or puts). | | Breaking it Down: | | The Christmas tree name comes from the strategy's very loose resemblance of a tree when viewed on... | | Read More » | | Related to "Christmas Tree" | | | | What is a Bear Call Spread? | | A bear call spread is an option strategy that involves the sale of a call option and simultaneous purchase of a call option on the same underlying asset. | | Read More » | | | Butterfly Spread | | Butterfly spreads are a neutral option strategy, used to profit when a trader feels the underlying stock will not rise or fall much. | | Read More » | | | Vertical Spread | | A vertical spread strategy uses purchases and sales of the same option type (put or call) and expiration, but with different strike prices. | | Read More » | | | At The Money | | At the money is a situation where an option's strike price is identical to the price of the underlying security. | | Read More » | | | Strike Price | | Strike price is the price at which the underlying asset of a derivative can be bought or sold at. | | Read More » | | |  | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
/butterfly_80410438-5bfc37f4c9e77c0051832080.jpg)
/bear_167427677-5bfc380cc9e77c00587a6db5.jpg)
No comments:
Post a Comment