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Comparision (SHORT CALL LADDER VS LONG CALL CONDOR SPREAD)

 

Compare Strategies

  SHORT CALL LADDER LONG CALL CONDOR SPREAD
About Strategy

Short Call Ladder Option Strategy 

This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited.

Long Call Condor Spread Option Strategy 

This strategy is implemented when a trader is bearish on the volatility and expects the market to move sideways. Using Call Options of the same expiry date, he will buy one Deep ITM Call Option, sell 1 ITM Call Option, sell 1 OTM Call Option, buy 1 Deep OTM Call Option. The risk and reward both are limited due to offsetting of long and short positions. For t ..

SHORT CALL LADDER Vs LONG CALL CONDOR SPREAD - Details

SHORT CALL LADDER LONG CALL CONDOR SPREAD
Market View Neutral Neutral
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 3 4
Strategy Level Advance Advance
Reward Profile Unlimited Limited
Risk Profile Limited Limited
Breakeven Point Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium

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

SHORT CALL LADDER LONG CALL CONDOR SPREAD
Market View Neutral Neutral
When to use? This strategy is implemented when a trader is moderately bullish on the market, and volatility This strategy works well when you expect the price of the underlying asset to be range bound in the coming days.
Action Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call Buy Deep ITM Call Option, Buy Deep OTM Call Option, Sell ITM Call Option, Sell OTM Call Option
Breakeven Point Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium

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

SHORT CALL LADDER LONG CALL CONDOR SPREAD
Maximum Profit Scenario Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received 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 Short Call - Net Premium Received + Commissions Paid Net Premium Paid
Risk Limited Limited
Reward Unlimited Limited

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

SHORT CALL LADDER LONG CALL CONDOR SPREAD
Similar Strategies Short Put Ladder, Strip, Strap Long Put Butterfly, Short Call Condor, Short Strangle
Disadvantage • Unlimited risk. • Margin required. • Amount of profit is comparatively low. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
Advantages • Higher probability of profit. • Unlimited upside profit. • Limited maximum loss. • Capable to generate profit even if there is low volatility in the market. • This strategy is associated with limited risk and limited profit. • Wider profit zone.

SHORT CALL LADDER

LONG CALL CONDOR SPREAD