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 long call and one higher exercise short call and another short call at an even higher exercise price. For example, an investor may buy a one USD 80 call and at the same time sell one USD 85 call and another call at USD 90. The maximum gain from such a Christmas tree is limited and can be achieved if the underlying price lies between the two short strikes at expiration. This gain is measured as the difference between the long strike and the first short strike adjusted for any credit or debit amount.

As Christmas trees are typically delta neutral, this strategy is also neutral with unlimited upside risk potential.