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Comparision (LONG CALL CONDOR SPREAD VS LONG CALL)

 

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  LONG CALL CONDOR SPREAD LONG CALL
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

Long Call Option Strategy

This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.

LONG CALL CONDOR SPREAD Vs LONG CALL - Details

LONG CALL CONDOR SPREAD LONG CALL
Market View Neutral Bullish
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 4 1
Strategy Level Advance Beginner Level
Reward Profile Limited Unlimited
Risk Profile Limited Limited
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Strike Price + Premium

LONG CALL CONDOR SPREAD Vs LONG CALL - When & How to use ?

LONG CALL CONDOR SPREAD LONG CALL
Market View Neutral Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
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 work when an investor expect the underlying instrument move in upward direction.
Action Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option Buying Call option
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Strike price + Premium

LONG CALL CONDOR SPREAD Vs LONG CALL - Risk & Reward

LONG CALL CONDOR SPREAD LONG CALL
Maximum Profit Scenario Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario Net Premium Paid Premium Paid
Risk Limited Limited
Reward Limited Unlimited

LONG CALL CONDOR SPREAD Vs LONG CALL - Strategy Pros & Cons

LONG CALL CONDOR SPREAD LONG CALL
Similar Strategies Long Put Butterfly, Short Call Condor, Short Strangle Protective Put
Disadvantage • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. • In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
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. • Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.

LONG CALL CONDOR SPREAD

LONG CALL