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Comparision (LONG CALL CONDOR SPREAD VS CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY)

 

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  LONG CALL CONDOR SPREAD CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
About Strategy

Long Call Condor Spread Option Strategy 

This 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

Christmas Tree Spread with Call Option Strategy

This Strategy is an advance option strategy that consists of three legs and six total options. In this strategy buying one call at strike price A, skipping strike price B, writes three calls at strike price C, and buying two calls at strike price D for same expiration dates for neutral to bullish forecast. An investor used this strategy to potential retur ..

LONG CALL CONDOR SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Details

LONG CALL CONDOR SPREAD CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View Neutral Bullish
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 4 4
Strategy Level Advance Advance
Reward Profile Limited Limited
Risk Profile Limited Limited
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Lowest strike prices + premium paid – the half premium.

LONG CALL CONDOR SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - When & How to use ?

LONG CALL CONDOR SPREAD CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Market View Neutral Bullish
When to use? This strategy works well when you expect the price of the underlying asset to be range bound in the coming days. This Strategy is used when an investor wants potential returns.
Action Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option • Buy 1 call , • Sell 3 calls, • Buy 2 calls
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Lowest strike prices + premium paid – the half premium.

LONG CALL CONDOR SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Risk & Reward

LONG CALL CONDOR SPREAD CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Maximum Profit Scenario Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid Equal middle strike price – lower strike price – the premium
Maximum Loss Scenario Net Premium Paid Net Debit paid for the strategy.
Risk Limited Limited
Reward Limited Limited

LONG CALL CONDOR SPREAD Vs CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY - Strategy Pros & Cons

LONG CALL CONDOR SPREAD CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY
Similar Strategies Long Put Butterfly, Short Call Condor, Short Strangle CHRISTMAS TREE SPREAD WITH PUT OPTION
Disadvantage • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. • Potential profit is lower or limited.
Advantages • 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. • The potential of loss is limited.

LONG CALL CONDOR SPREAD

CHRISTMAS TREE SPREAD WITH CALL OPTION STRATEGY