Compare Strategies
LONG CALL | LONG CALL CONDOR SPREAD | |
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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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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 CALL Vs LONG CALL CONDOR SPREAD - Details
LONG CALL | LONG CALL CONDOR SPREAD | |
---|---|---|
Market View | Bullish | Neutral |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 1 | 4 |
Strategy Level | Beginner Level | Advance |
Reward Profile | Unlimited | Limited |
Risk Profile | Limited | Limited |
Breakeven Point | Strike Price + Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
LONG CALL Vs LONG CALL CONDOR SPREAD - When & How to use ?
LONG CALL | LONG CALL CONDOR SPREAD | |
---|---|---|
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. | This strategy works well when you expect the price of the underlying asset to be range bound in the coming days. |
Action | Buying Call option | Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option |
Breakeven Point | Strike price + Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
LONG CALL Vs LONG CALL CONDOR SPREAD - Risk & Reward
LONG CALL | LONG CALL CONDOR SPREAD | |
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Maximum Profit Scenario | Underlying Asset close above from the strike price on expiry. | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid |
Maximum Loss Scenario | Premium Paid | Net Premium Paid |
Risk | Limited | Limited |
Reward | Unlimited | Limited |
LONG CALL Vs LONG CALL CONDOR SPREAD - Strategy Pros & Cons
LONG CALL | LONG CALL CONDOR SPREAD | |
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Similar Strategies | Protective Put | Long Put Butterfly, Short Call Condor, Short Strangle |
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. | • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. |
Advantages | • Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock. | • 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. |