Compare Strategies
IRON CONDORS | LONG CALL CONDOR SPREAD | |
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About Strategy |
Iron Condors Option StrategyIron Condor is a neutral trading strategy. A trader tries to make profit from low volatility in the price of the underlying asset. This strategy will be better understood if you recall ‘Bull Put Spread’ & ‘Bear Call Spread’. A trader will buy one Deep OTM Put Option and sell one OTM Put Option,. He will also sell one OTM Call Option and buy one Deep OTM Call Option. |
Long Call Condor Spread Option StrategyThis strategy is implemented when a trader is bearish on the volatility and expects the market to move sideways. Using Call Options of the same expiry date, he will buy one Deep ITM Call Option, sell 1 ITM Call Option, sell 1 OTM Call Option, buy 1 Deep OTM Call Option. The risk and reward both are limited due to offsetting of long and short positions. For t .. |
IRON CONDORS Vs LONG CALL CONDOR SPREAD - Details
IRON CONDORS | LONG CALL CONDOR SPREAD | |
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Market View | Neutral | Neutral |
Type (CE/PE) | CE (Call Option) + PE (Put Option) | CE (Call Option) |
Number Of Positions | 4 | 4 |
Strategy Level | Advance | Advance |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
IRON CONDORS Vs LONG CALL CONDOR SPREAD - When & How to use ?
IRON CONDORS | LONG CALL CONDOR SPREAD | |
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Market View | Neutral | Neutral |
When to use? | When a trader tries to make profit from low volatility in the price of the underlying asset. | This strategy works well when you expect the price of the underlying asset to be range bound in the coming days. |
Action | Sell 1 OTM Put, Buy 1 OTM Put (Lower Strike), Sell 1 OTM Call, Buy 1 OTM Call (Higher Strike) | Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option |
Breakeven Point | Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
IRON CONDORS Vs LONG CALL CONDOR SPREAD - Risk & Reward
IRON CONDORS | LONG CALL CONDOR SPREAD | |
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Maximum Profit Scenario | Net Premium Received - Commissions Paid | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
Maximum Loss Scenario | Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid | Net Premium Paid |
Risk | Limited | Limited |
Reward | Limited | Limited |
IRON CONDORS Vs LONG CALL CONDOR SPREAD - Strategy Pros & Cons
IRON CONDORS | LONG CALL CONDOR SPREAD | |
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Similar Strategies | Long Put Butterfly, Neutral Calendar Spread | Long Put Butterfly, Short Call Condor, Short Strangle |
Disadvantage | • Full of risk. • Unlimited maximum loss. | • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
Advantages | • Chance to gather double premium. • Sure, maximum gains on one-half the trade. • Flexible and double leverage at half price. | • Capable to generate profit even if there is low volatility in the market. • This strategy is associated with limited risk and limited profit. • Wider profit zone. |