Compare Strategies
SHORT CALL CONDOR SPREAD | BULL PUT SPREAD | |
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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. |
Bull Put Spread Option StrategyBull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. |
SHORT CALL CONDOR SPREAD Vs BULL PUT SPREAD - Details
SHORT CALL CONDOR SPREAD | BULL PUT SPREAD | |
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Market View | Volatile | Bullish |
Type (CE/PE) | CE (Call Option) | PE (Put Option) |
Number Of Positions | 4 | 2 |
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 | Strike price of short put - net premium paid |
SHORT CALL CONDOR SPREAD Vs BULL PUT SPREAD - When & How to use ?
SHORT CALL CONDOR SPREAD | BULL PUT SPREAD | |
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Market View | Volatile | Bullish |
When to use? | This strategy is used when an investor expect the price of the underlying stock to be very volatile. | Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall. |
Action | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option | Buy OTM Put Option, Sell ITM Put Option |
Breakeven Point | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium | Strike price of short put - net premium paid |
SHORT CALL CONDOR SPREAD Vs BULL PUT SPREAD - Risk & Reward
SHORT CALL CONDOR SPREAD | BULL PUT SPREAD | |
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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 = Net Premium Received |
Maximum Loss Scenario | Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid | Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received |
Risk | Limited | Limited |
Reward | Limited | Limited |
SHORT CALL CONDOR SPREAD Vs BULL PUT SPREAD - Strategy Pros & Cons
SHORT CALL CONDOR SPREAD | BULL PUT SPREAD | |
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Similar Strategies | Short Strangle | Bull Call Spread, Bear Put Spread, Collar |
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. | • Limited profit potential. • In loss situations, time decay may go against you. |
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. | • Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk. |