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Comparision (SHORT CALL CONDOR SPREAD VS BEAR CALL SPREAD)

 

Compare Strategies

  SHORT CALL CONDOR SPREAD BEAR CALL 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.

Bear Call Spread Option Strategy 

Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r ..

SHORT CALL CONDOR SPREAD Vs BEAR CALL SPREAD - Details

SHORT CALL CONDOR SPREAD BEAR CALL SPREAD
Market View Volatile Bearish
Type (CE/PE) CE (Call Option) CE (Call Option)
Number Of Positions 4 2
Strategy Level Advance Beginners
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 Call + Net Premium Received

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

SHORT CALL CONDOR SPREAD BEAR CALL SPREAD
Market View Volatile Bearish
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 you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option Buy OTM Call Option, Sell ITM Call Option
Breakeven Point Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium Strike Price of Short Call + Net Premium Received

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

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

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

SHORT CALL CONDOR SPREAD BEAR CALL SPREAD
Similar Strategies Short Strangle Bear Put Spread, Bull Call Spread
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 amount of profit. • Margin requirement, more commission charges.
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 takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.

SHORT CALL CONDOR SPREAD

BEAR CALL SPREAD