When it comes to Options Trading, there are different complexities involved in terms of choosing a specific strategy that works the best for you.
At the same time, each strategy has its own set of advantages as well as limitations, thus making the concept of options trading even more challenging. Thus, in case you are looking to fit a particular strategy in your option trades, just check few areas before you make a choice.
In this detailed comparison of Collar Strategy Vs Long Call Condor options trading strategies, we will be looking at the below-mentioned aspects and more:
- Current Market Position
- Your Risk Appetite
- Your Trading Experience
- Profit Potential
- Intention and Expectation of a trader
- Break-even point of your trade
Apart from the Collar Strategy Vs Long Call Condor strategies, there are more than 25 comparisons of each of these strategies with other option strategies. With all these comparisons, you should be able to filter the ones that work the best for you.
Here is the detailed Collar Strategy Vs Long Call Condor comparison:
| Comparison Aspect | Collar Strategy | Long Call Condor |
| View |  |  |
| Strategy Introduction | The collar strategy is used when the trader is mildly bullish towards the market. He expects the prices to go up, but at the same time, he wants to limit his risks if the prices go down. It is ideally not used by the...more | Long call condor is a direction-neutral strategy. It is not necessary to know the direction in which the market is expected to move. In fact, it works at the time when...more |
| Investor Obligation | The trader is able to benefit from the price rise by holding the underlying security and receives ownership benefits like dividends. At the same time, the risks are limited with the use of protective put. | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. |
| Market Position | Moderately Bullish | Neutral |
| Strategy Level Suitable for | Experts | Intermediates |
| Options Traded | Call, Put and Underlying | Call |
| Number of Positions | 3 | 4 |
| Action Needed | Sell OTM Call, Buy OTM Put, Hold underlying | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Price of Features - Call Premium + Put Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Up | Little or no movement in the price of the underlying asset |
| Strategy Summary | High Potential | Straight-Forward |
| Advantages | Dividend Benefits, Limited Risk | Profits in Low Volatilty, Limited Risk |
| Disadvantages | Limited Profits | High Premium, Selection of Correct Strike Prices is Paramount. |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Collar Strategy Vs Short Put | Long Call Condor Vs Short Put |
| Collar Strategy Vs Long Combo | Long Call Condor Vs Long Combo | |
| Collar Strategy Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Collar Strategy Vs Long Put | Long Call Condor Vs Long Put | |
| Collar Strategy Vs Long Call | Long Call Condor Vs Long Call | |
| Collar Strategy Vs Covered Call | Long Call Condor Vs Covered Call | |
| Collar Strategy Vs Covered Put | Long Call Condor Vs Covered Put | |
| Collar Strategy Vs Protective Call | Long Call Condor Vs Protective Call | |
| Collar Strategy Vs Short Box | Long Call Condor Vs Short Box | |
| Collar Strategy Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Collar Strategy Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Collar Strategy Vs Box Spread | Long Call Condor Vs Box Spread | |
| Collar Strategy Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Collar Strategy Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Collar Strategy Vs Short Call | Long Call Condor Vs Collar Strategy | |
| Collar Strategy Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Collar Strategy Vs Short Straddle | Long Call Condor Vs Short Straddle | |
| Collar Strategy Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Collar Strategy Vs Short Call Butterfly | Long Call Condor Vs Short Call Butterfly | |
| Collar Strategy Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Collar Strategy Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Collar Strategy Vs Bull Call Spread | Long Call Condor Vs Bull Call Spread | |
| Collar Strategy Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Collar Strategy Vs Long Call Condor option strategies.
Furthermore, if you are in a neutral market situation and have a limited risk appetite, then Long Call Condor may suit you well. You need to know that this strategy provides limited level profit only.
At the same time, if you are in a moderately Bullish Market situation and are looking for consistent but limited profits for your share market trades, then you can opt to go for the Collar Strategy. There is a limited scope of risk involved in this strategy too.
This needs to be known that the profit you get using these strategies is also limited in scope.
Furthermore, as told above, it also depends on the market situation.
In case you are looking to trade in options segment or share market in general, let us assist you in that. Just fill the form below and we will take you to the steps ahead.
