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 Covered Call 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 Covered Call 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 Covered Call Vs Long Call Condor comparison:
| Comparison Aspect | Long Call Condor | Covered Call |
| View |  |  |
| Strategy Introduction | 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 | In a Covered Call Strategy, the trader holds a long position in a security and at the same time, he writes the call options on the same security to generate income through premiums...more |
| Investor Obligation | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. | Pay the difference as a loss in case the stock value falls beyond the investor set price. |
| Market Position | Neutral | Moderately Bullish or Neutral |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Call | Call |
| Number of Positions | 4 | 2 (Underlying & Call) |
| Action Needed | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call | Sell Call Option |
| Risk for You | Limited | Unlimited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium | Strike Price MINUS Premium |
| Investor Intention | Let Options Expire Worthlessly | Make Money from Premium Received |
| Investor Expectation | Little or no movement in the price of the underlying asset | Limited Price Movements |
| Strategy Summary | Straight-Forward | Cautious |
| Advantages | Profits in Low Volatilty, Limited Risk | Generates Steady Income |
| Disadvantages | High Premium, Selection of Correct Strike Prices is Paramount. | Limited Profit, Unlimited Risk |
| Market Scenarios - Profit | 1 | 2 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Call Condor Vs Short Put | Covered Call Vs Short Put |
| Long Call Condor Vs Long Combo | Covered Call Vs Long Combo | |
| Long Call Condor Vs Synthetic Call | Covered Call Vs Synthetic Call | |
| Long Call Condor Vs Long Put | Covered Call Vs Short Call | |
| Long Call Condor Vs Long Call | Covered Call Vs Long Call | |
| Long Call Condor Vs Covered Call | Covered Call Vs Long Put | |
| Long Call Condor Vs Covered Put | Covered Call Vs Covered Put | |
| Long Call Condor Vs Protective Call | Covered Call Vs Protective Call | |
| Long Call Condor Vs Short Box | Covered Call Vs Short Box | |
| Long Call Condor Vs Short Call | Covered Call Vs Long Call Condor | |
| Long Call Condor Vs Short Call Condor | Covered Call Vs Short Call Condor | |
| Long Call Condor Vs Box Spread | Covered Call Vs Box Spread | |
| Long Call Condor Vs Short Strangle | Covered Call Vs Short Strangle | |
| Long Call Condor Vs Long Strangle | Covered Call Vs Long Strangle | |
| Long Call Condor Vs Collar Strategy | Covered Call Vs Collar Strategy | |
| Long Call Condor Vs Long Straddle | Covered Call Vs Long Straddle | |
| Long Call Condor Vs Short Straddle | Covered Call Vs Short Straddle | |
| Long Call Condor Vs Long Call Butterfly | Covered Call Vs Long Call Butterfly | |
| Long Call Condor Vs Short Call Butterfly | Covered Call Vs Short Call Butterfly | |
| Long Call Condor Vs Bear Call Spread | Covered Call Vs Bear Call Spread | |
| Long Call Condor Vs Bear Put Spread | Covered Call Vs Bear Put Spread | |
| Long Call Condor Vs Bull Call Spread | Covered Call Vs Bull Put Spread | |
| Long Call Condor Vs Bull Put Spread | Covered Call Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Covered Call Vs Long Call Condor option strategies.
At the same time, 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.
However, if the market is moderately bullish or neutral with a high-risk appetite with a limitation on the profit – then you can opt for a covered call option strategy.
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.
