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Comparision (LONG CALL CONDOR SPREAD VS SHORT CALL)

 

Compare Strategies

  LONG CALL CONDOR SPREAD SHORT 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

Short Call Option Strategy

A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders.
However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy ..

LONG CALL CONDOR SPREAD Vs SHORT CALL - Details

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

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

LONG CALL CONDOR SPREAD SHORT CALL
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. It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option Sell or Write Call Option
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Strike Price of Short Call + Premium Received

LONG CALL CONDOR SPREAD Vs SHORT CALL - Risk & Reward

LONG CALL CONDOR SPREAD SHORT CALL
Maximum Profit Scenario Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid Max Profit = Premium Received
Maximum Loss Scenario Net Premium Paid Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk Limited Unlimited
Reward Limited Limited

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

LONG CALL CONDOR SPREAD SHORT CALL
Similar Strategies Long Put Butterfly, Short Call Condor, Short Strangle Covered Put, Covered Calls
Disadvantage • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. • Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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. • With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.

LONG CALL CONDOR SPREAD

SHORT CALL