Compare Strategies
LONG CALL CONDOR SPREAD | BEAR CALL SPREAD | |
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About Strategy |
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 |
Bear Call Spread Option StrategyBear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. |
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Details
LONG CALL CONDOR SPREAD | BEAR CALL SPREAD | |
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Market View | Neutral | Bearish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 4 | 2 |
Strategy Level | Advance | Beginners |
Reward Profile | Limited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium | Strike Price of Short Call + Net Premium Received |
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - When & How to use ?
LONG CALL CONDOR SPREAD | BEAR CALL SPREAD | |
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Market View | Neutral | Bearish |
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 you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations. |
Action | Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option | Buy OTM Call Option, Sell ITM Call Option |
Breakeven Point | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium | Strike Price of Short Call + Net Premium Received |
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Risk & Reward
LONG CALL CONDOR SPREAD | BEAR CALL SPREAD | |
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Maximum Profit Scenario | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid | Max Profit = Net Premium Received - Commissions Paid |
Maximum Loss Scenario | Net Premium Paid | Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received |
Risk | Limited | Limited |
Reward | Limited | Limited |
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Strategy Pros & Cons
LONG CALL CONDOR SPREAD | BEAR CALL SPREAD | |
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Similar Strategies | Long Put Butterfly, Short Call Condor, Short Strangle | Bear Put Spread, Bull Call 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 amount of profit. • Margin requirement, more commission charges. |
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. | • This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk. |