Comparision (LONG CALL CONDOR SPREAD
VS BULL CALENDER SPREAD )
Compare Strategies
LONG CALL CONDOR SPREAD
BULL CALENDER SPREAD
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
This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof ..
Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium
Stock Price when long call value is equal to net debit.
LONG CALL CONDOR SPREAD Vs BULL CALENDER SPREAD - Risk & Reward
LONG CALL CONDOR SPREAD
BULL CALENDER SPREAD
Maximum Profit Scenario
Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid
You have unlimited profit potential to the upside.
Maximum Loss Scenario
Net Premium Paid
Max Loss = Premium Paid + Commissions Paid
Risk
Limited
Limited
Reward
Limited
Unlimited
LONG CALL CONDOR SPREAD Vs BULL CALENDER SPREAD - Strategy Pros & Cons
LONG CALL CONDOR SPREAD
BULL CALENDER SPREAD
Similar Strategies
Long Put Butterfly, Short Call Condor, Short Strangle
The Collar, Bull Put Spread
Disadvantage
• Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.
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.
• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.