A Christmas tree spread that involves the selling of one call option at the lowest exercise price and the purchase of of another call at each of the higher exercise prices. In other words, this position is established by combining a low exercise short call and one higher exercise long call and another long call at an even higher exercise price. For example, an investor may sell one USD 80 call and at the same time buy one USD 85 call and another call at USD 90. The maximum gain from such a Christmas tree is unlimited upside. However, a downward fall cannot be ruled out.

As Christmas trees are typically delta neutral, this strategy is also neutral with limited downside potential if the spread is executed as a debit. And no risk can be expected if it is executed as a credit.