Compare Strategies
LONG CALL CONDOR SPREAD | SHORT CALL LADDER | |
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About Strategy |
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 |
Short Call Ladder Option StrategyThis 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. Risk:
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LONG CALL CONDOR SPREAD Vs SHORT CALL LADDER - Details
LONG CALL CONDOR SPREAD | SHORT CALL LADDER | |
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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 | |
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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 | |
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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 | |
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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. |