Compare Strategies
| STRIP | SHORT CALL CONDOR SPREAD | |
|---|---|---|
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| About Strategy |
Strip Option StrategyStrip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the |
Short Call Condor Spread Option StrategyShort Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. |
STRIP Vs SHORT CALL CONDOR SPREAD - Details
| STRIP | SHORT CALL CONDOR SPREAD | |
|---|---|---|
| Market View | Neutral | Volatile |
| Type (CE/PE) | CE (Call Option) + PE (Put Option) | CE (Call Option) |
| Number Of Positions | 3 | 4 |
| Strategy Level | Beginners | Advance |
| Reward Profile | Unlimited | Limited |
| Risk Profile | Limited | Limited |
| Breakeven Point | Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2) | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
STRIP Vs SHORT CALL CONDOR SPREAD - When & How to use ?
| STRIP | SHORT CALL CONDOR SPREAD | |
|---|---|---|
| Market View | Neutral | Volatile |
| When to use? | When a trader is bearish on the market and bullish on volatility then he will implement this strategy. | This strategy is used when an investor expect the price of the underlying stock to be very volatile. |
| Action | Buy 1 ATM Call, Buy 2 ATM Puts | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option |
| Breakeven Point | Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2) | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium |
STRIP Vs SHORT CALL CONDOR SPREAD - Risk & Reward
| STRIP | SHORT CALL CONDOR SPREAD | |
|---|---|---|
| Maximum Profit Scenario | Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
| Maximum Loss Scenario | Net Premium Paid + Commissions Paid | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid |
| Risk | Limited | Limited |
| Reward | Unlimited | Limited |
STRIP Vs SHORT CALL CONDOR SPREAD - Strategy Pros & Cons
| STRIP | SHORT CALL CONDOR SPREAD | |
|---|---|---|
| Similar Strategies | Strap, Short Put Ladder | Short Strangle |
| Disadvantage | Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position. | • Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
| Advantages | Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving. | • This strategy allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone. |