Compare Strategies
SHORT CALL CONDOR SPREAD | SHORT CALL | |
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About Strategy |
Short Call Condor Spread Option StrategyShort Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. |
Short Call Option StrategyA trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. |
SHORT CALL CONDOR SPREAD Vs SHORT CALL - Details
SHORT CALL CONDOR SPREAD | SHORT CALL | |
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Market View | Volatile | Bearish |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 4 | 1 |
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 | Strike Price of Short Call + Premium Received |
SHORT CALL CONDOR SPREAD Vs SHORT CALL - When & How to use ?
SHORT CALL CONDOR SPREAD | SHORT CALL | |
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Market View | Volatile | Bearish |
When to use? | This strategy is used when an investor expect the price of the underlying stock to be very volatile. | It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying. |
Action | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option | Sell or Write Call Option |
Breakeven Point | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium | Strike Price of Short Call + Premium Received |
SHORT CALL CONDOR SPREAD Vs SHORT CALL - Risk & Reward
SHORT CALL CONDOR SPREAD | SHORT CALL | |
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Maximum Profit Scenario | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid | Max Profit = Premium Received |
Maximum Loss Scenario | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid | Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received |
Risk | Limited | Unlimited |
Reward | Limited | Limited |
SHORT CALL CONDOR SPREAD Vs SHORT CALL - Strategy Pros & Cons
SHORT CALL CONDOR SPREAD | SHORT CALL | |
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Similar Strategies | Short Strangle | Covered Put, Covered Calls |
Disadvantage | • Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit. | • Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected. |
Advantages | • This strategy allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone. | • With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount. |