Compare Strategies
LONG COMBO | LONG CALL CONDOR SPREAD | |
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About Strategy |
Long Combo Option StrategyLong Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received |
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 .. |
LONG COMBO Vs LONG CALL CONDOR SPREAD - Details
LONG COMBO | LONG CALL CONDOR SPREAD | |
---|---|---|
Market View | Bullish | Neutral |
Type (CE/PE) | CE (Call Option) + PE (Put Option) | CE (Call Option) |
Number Of Positions | 2 | 4 |
Strategy Level | Advance | Advance |
Reward Profile | Unlimited | Limited |
Risk Profile | Unlimited | Limited |
Breakeven Point | Call Strike + Net Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
LONG COMBO Vs LONG CALL CONDOR SPREAD - When & How to use ?
LONG COMBO | LONG CALL CONDOR SPREAD | |
---|---|---|
Market View | Bullish | Neutral |
When to use? | This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it. | This strategy works well when you expect the price of the underlying asset to be range bound in the coming days. |
Action | Sell OTM Put Option, Buy OTM Call Option | Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option |
Breakeven Point | Call Strike + Net Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
LONG COMBO Vs LONG CALL CONDOR SPREAD - Risk & Reward
LONG COMBO | LONG CALL CONDOR SPREAD | |
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Maximum Profit Scenario | Underlying asset goes up and Call option exercised | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
Maximum Loss Scenario | Underlying asset goes down and Put option exercised | Net Premium Paid |
Risk | Unlimited | Limited |
Reward | Unlimited | Limited |
LONG COMBO Vs LONG CALL CONDOR SPREAD - Strategy Pros & Cons
LONG COMBO | LONG CALL CONDOR SPREAD | |
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Similar Strategies | - | Long Put Butterfly, Short Call Condor, Short Strangle |
Disadvantage | • Losses can keep on increasing as the price of stock goes down. • High risk strategy. | • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
Advantages | • Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial. | • 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. |