Compare Strategies
SHORT CALL CONDOR SPREAD | CALL BACKSPREAD | |
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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. |
Call Backspread Option Trading This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. |
SHORT CALL CONDOR SPREAD Vs CALL BACKSPREAD - Details
SHORT CALL CONDOR SPREAD | CALL BACKSPREAD | |
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Market View | Volatile | Bullish |
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 | Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss |
SHORT CALL CONDOR SPREAD Vs CALL BACKSPREAD - When & How to use ?
SHORT CALL CONDOR SPREAD | CALL BACKSPREAD | |
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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. | This strategy is used when the investor expects the price of the stock to rise in the future. |
Action | Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option | Sell 1 ITM Call, BUY 2 OTM Call |
Breakeven Point | Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium | Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss |
SHORT CALL CONDOR SPREAD Vs CALL BACKSPREAD - Risk & Reward
SHORT CALL CONDOR SPREAD | CALL BACKSPREAD | |
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Maximum Profit Scenario | Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid | Unlimited profit potential if the stock goes in upward direction. |
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 long call - Strike Price of short call - Net premium received |
Risk | Limited | Limited |
Reward | Limited | Unlimited |
SHORT CALL CONDOR SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons
SHORT CALL CONDOR SPREAD | CALL BACKSPREAD | |
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Similar Strategies | 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. | |
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. | • Unlimited profit potential. |