Compare Strategies
SHORT CALL CONDOR SPREAD | LONG PUT LADDER | |
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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. |
Long Put Ladder Option StrategyLong 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:< .. |
SHORT CALL CONDOR SPREAD Vs LONG PUT LADDER - Details
SHORT CALL CONDOR SPREAD | LONG PUT LADDER | |
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Market View | Volatile | 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 |
SHORT CALL CONDOR SPREAD Vs LONG PUT LADDER - When & How to use ?
SHORT CALL CONDOR SPREAD | LONG PUT LADDER | |
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Market View | Volatile | Neutral |
When to use? | This strategy is used when an investor expect the price of the underlying stock to be very volatile. | This Strategy can be implemented when a trader is slightly bearish on the market and volatility. |
Action | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM 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 |
SHORT CALL CONDOR SPREAD Vs LONG PUT LADDER - Risk & Reward
SHORT CALL CONDOR SPREAD | LONG PUT 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 | Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid |
Maximum Loss Scenario | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions 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 |
SHORT CALL CONDOR SPREAD Vs LONG PUT LADDER - Strategy Pros & Cons
SHORT CALL CONDOR SPREAD | LONG PUT LADDER | |
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Similar Strategies | Short Strangle | Short Strangle (Sell Strangle), Short Straddle (Sell Straddle) |
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. • Margin required. |
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. | • Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit. |