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Comparision (SHORT CALL CONDOR SPREAD VS SHORT CALL CONDOR SPREAD)

 

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  SHORT CALL CONDOR SPREAD SHORT CALL CONDOR SPREAD
About Strategy

Short Call Condor Spread Option Strategy

Short 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 Condor Spread Option Strategy

Short 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 CONDOR SPREAD Vs SHORT CALL CONDOR SPREAD - Details

SHORT CALL CONDOR SPREAD SHORT CALL CONDOR SPREAD
Market View Volatile Volatile
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 4 4
Strategy Level Advance Advance
Reward Profile Limited Limited
Risk Profile Limited Limited
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium

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

SHORT CALL CONDOR SPREAD SHORT CALL CONDOR SPREAD
Market View Volatile Volatile
When to use? This strategy is used when an investor expect the price of the underlying stock to be very volatile. This strategy is used when an investor expect the price of the underlying stock to be very volatile.
Action Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium

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

SHORT CALL CONDOR SPREAD SHORT CALL CONDOR SPREAD
Maximum Profit Scenario Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid
Maximum Loss Scenario Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid
Risk Limited Limited
Reward Limited Limited

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

SHORT CALL CONDOR SPREAD SHORT CALL CONDOR SPREAD
Similar Strategies Short Strangle Short Strangle
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. • 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.
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. • 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.

SHORT CALL CONDOR SPREAD

SHORT CALL CONDOR SPREAD