A Christmas tree is an options trading spread strategy achieved by buying and selling six call (or 6 put) options with different strikes but the same expiration dates for a neutral to bullish forecast.
 | | Term of the Day | Words to Know | | |  | | Christmas Tree Options Strategy | | A Christmas tree is an options trading spread strategy achieved by buying and selling six call (or 6 put) options with different strikes but the same expiration dates for a neutral to bullish forecast. This is termed a long call Christmas tree when using calls or a put Christmas tree when using put options. The strategy is also available long (bullish) or short, (bearish). | | Read More » | | Related to "Christmas Tree" | | | | 10 Options Strategies To Know | | Traders often jump into trading options with little understanding of options strategies. There are many strategies available that limit risk and maximize return. | | Read More » | | | Iron Condor | | An iron condor is an options strategy created with four options consisting of two puts (one long and one short) and two calls (one long and one short), and four strike prices, all with the same expiration date. | | Read More » | | | Condor Spread | | A condor spread is a non-directional options strategy that limits both gains and losses while seeking to profit from either low or high volatility. | | Read More » | | | Vertical Spread | | A vertical spread involves the simultaneous buying and selling of options of the same type (puts or calls) and expiry, but at different strike prices. | | Read More » | | | Iron Butterfly | | An iron butterfly is an options trade that uses four different contracts as part of a strategy to benefit from stocks or futures prices that move sideways or slowly upward. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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