Comparision (LONG CALL CONDOR SPREAD
VS BEAR CALL SPREAD)
Compare Strategies
LONG CALL CONDOR SPREAD
BEAR CALL SPREAD
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
Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r ..
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Details
LONG CALL CONDOR SPREAD
BEAR CALL SPREAD
Market View
Neutral
Bearish
Type (CE/PE)
CE (Call Option)
CE (Call Option)
Number Of Positions
4
2
Strategy Level
Advance
Beginners
Reward Profile
Limited
Limited
Risk Profile
Limited
Limited
Breakeven Point
Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium
Strike Price of Short Call + Net Premium Received
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - When & How to use ?
LONG CALL CONDOR SPREAD
BEAR CALL SPREAD
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.
This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action
Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option
Buy OTM Call Option, Sell ITM Call Option
Breakeven Point
Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium
Strike Price of Short Call + Net Premium Received
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Risk & Reward
LONG CALL CONDOR SPREAD
BEAR CALL SPREAD
Maximum Profit Scenario
Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid
Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario
Net Premium Paid
Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk
Limited
Limited
Reward
Limited
Limited
LONG CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Strategy Pros & Cons
LONG CALL CONDOR SPREAD
BEAR CALL SPREAD
Similar Strategies
Long Put Butterfly, Short Call Condor, Short Strangle
Bear Put Spread, Bull Call Spread
Disadvantage
• Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
• Limited amount of profit. • Margin requirement, more commission charges.
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.
• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.