Christmas Tree (Options)
Definition
A complex options strategy using multiple vertical spreads at different strikes, resembling a tree shape for directional bias.
Example
A call Christmas tree is used for moderately bullish outlooks with limited risk.
Related Terms
Frequently Asked Question
What is a Christmas Tree options strategy?
A Christmas Tree is a complex options strategy using multiple vertical spreads at different strikes that creates a tree-shaped payoff diagram. It is used for moderately directional outlooks with defined risk and reward.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.