STOCK BROKER REVIEW | INVESTING | UPCOMING IPO | ALGO TRADING | TECHNICAL ANALYSIS

Comparision (LONG CALL CONDOR SPREAD VS SHORT CALL LADDER)

 

Compare Strategies

  LONG CALL CONDOR SPREAD SHORT CALL LADDER
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

Short Call Ladder Option Strategy 

This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited.

LONG CALL CONDOR SPREAD Vs SHORT CALL LADDER - Details

LONG CALL CONDOR SPREAD SHORT CALL LADDER
Market View Neutral Neutral
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 4 3
Strategy Level Advance Advance
Reward Profile Limited Unlimited
Risk Profile Limited Limited
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

LONG CALL CONDOR SPREAD Vs SHORT CALL LADDER - When & How to use ?

LONG CALL CONDOR SPREAD SHORT CALL LADDER
Market View Neutral Neutral
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 implemented when a trader is moderately bullish on the market, and volatility
Action Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

LONG CALL CONDOR SPREAD Vs SHORT CALL LADDER - Risk & Reward

LONG CALL CONDOR SPREAD SHORT CALL LADDER
Maximum Profit Scenario Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received
Maximum Loss Scenario Net Premium Paid Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk Limited Limited
Reward Limited Unlimited

LONG CALL CONDOR SPREAD Vs SHORT CALL LADDER - Strategy Pros & Cons

LONG CALL CONDOR SPREAD SHORT CALL LADDER
Similar Strategies Long Put Butterfly, Short Call Condor, Short Strangle Short Put Ladder, Strip, Strap
Disadvantage • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. • Unlimited risk. • Margin required.
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. • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.

LONG CALL CONDOR SPREAD

SHORT CALL LADDER