Compare Strategies
LONG CALL | IRON CONDORS | |
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About Strategy |
Long Call Option StrategyThis 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. Risk:
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Iron Condors Option StrategyIron Condor is a neutral trading strategy. A trader tries to make profit from low volatility in the price of the underlying asset. This strategy will be better understood if you recall ‘Bull Put Spread’ & ‘Bear Call Spread’. A trader will buy one Deep OTM Put Option and sell one OTM Put Option,. He will also sell one OTM Call Option and buy one Deep OTM Call Option. .. |
LONG CALL Vs IRON CONDORS - Details
LONG CALL | IRON CONDORS | |
---|---|---|
Market View | Bullish | Neutral |
Type (CE/PE) | CE (Call Option) | CE (Call Option) + PE (Put Option) |
Number Of Positions | 1 | 4 |
Strategy Level | Beginner Level | Advance |
Reward Profile | Unlimited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike Price + Premium | Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received |
LONG CALL Vs IRON CONDORS - When & How to use ?
LONG CALL | IRON CONDORS | |
---|---|---|
Market View | 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.) | Neutral |
When to use? | This strategy work when an investor expect the underlying instrument move in upward direction. | When a trader tries to make profit from low volatility in the price of the underlying asset. |
Action | Buying Call option | Sell 1 OTM Put, Buy 1 OTM Put (Lower Strike), Sell 1 OTM Call, Buy 1 OTM Call (Higher Strike) |
Breakeven Point | Strike price + Premium | Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received |
LONG CALL Vs IRON CONDORS - Risk & Reward
LONG CALL | IRON CONDORS | |
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Maximum Profit Scenario | Underlying Asset close above from the strike price on expiry. | Net Premium Received - Commissions Paid |
Maximum Loss Scenario | Premium Paid | Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid |
Risk | Limited | Limited |
Reward | Unlimited | Limited |
LONG CALL Vs IRON CONDORS - Strategy Pros & Cons
LONG CALL | IRON CONDORS | |
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Similar Strategies | Protective Put | Long Put Butterfly, Neutral Calendar Spread |
Disadvantage | • 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. | • Full of risk. • Unlimited maximum loss. |
Advantages | • Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock. | • Chance to gather double premium. • Sure, maximum gains on one-half the trade. • Flexible and double leverage at half price. |