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

Comparision (LONG CALL CONDOR SPREAD VS LONG PUT LADDER)

 

Compare Strategies

  LONG CALL CONDOR SPREAD LONG PUT 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

Long Put Ladder Option Strategy 

Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited.
Risk:< ..

LONG CALL CONDOR SPREAD Vs LONG PUT LADDER - Details

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

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

LONG CALL CONDOR SPREAD LONG PUT 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 can be implemented when a trader is slightly bearish on the market and volatility.
Action Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

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

LONG CALL CONDOR SPREAD LONG PUT LADDER
Maximum Profit Scenario Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid
Maximum Loss Scenario Net Premium Paid When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid
Risk Limited Unlimited
Reward Limited Limited

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

LONG CALL CONDOR SPREAD LONG PUT LADDER
Similar Strategies Long Put Butterfly, Short Call Condor, Short Strangle Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
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. • Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.

LONG CALL CONDOR SPREAD

LONG PUT LADDER