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 Short 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 Short 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 Short Call Condor comparison:
| Comparison Aspect | Short Call Condor | Covered Call |
| View |  |  |
| Strategy Introduction | Short Call Condor works in a neutral market and helps the trader to be unaffected by the direction of the trend. The profits can be earned irrespective of the direction in which the prices move...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 | In case of limited price movement, the trader supposedlly incurs a loss. | 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 Short ITM Call, 1 Long ITM Call, 1 Long OTM Call, 1 Short 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 | High Implied Volatility | Limited Price Movements |
| Strategy Summary | Almost a Hero (Limited Profit) | Cautious |
| Advantages | Low Risk, Low Initial Capital, Profit Chances High | Generates Steady Income |
| Disadvantages | High Premium, Limited Profit | Limited Profit, Unlimited Risk |
| Market Scenarios - Profit | 1 | 2 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Short Call Condor Vs Short Put | Covered Call Vs Short Put |
| Short Call Condor Vs Long Combo | Covered Call Vs Long Combo | |
| Short Call Condor Vs Synthetic Call | Covered Call Vs Synthetic Call | |
| Short Call Condor Vs Long Put | Covered Call Vs Short Call | |
| Short Call Condor Vs Long Call | Covered Call Vs Long Call | |
| Short Call Condor Vs Covered Call | Covered Call Vs Long Put | |
| Short Call Condor Vs Covered Put | Covered Call Vs Covered Put | |
| Short Call Condor Vs Protective Call | Covered Call Vs Protective Call | |
| Short Call Condor Vs Short Box | Covered Call Vs Short Box | |
| Short Call Condor Vs Long Call Condor | Covered Call Vs Long Call Condor | |
| Short Call Condor Vs Short Call | Covered Call Vs Short Call Condor | |
| Short Call Condor Vs Box Spread | Covered Call Vs Box Spread | |
| Short Call Condor Vs Short Strangle | Covered Call Vs Short Strangle | |
| Short Call Condor Vs Long Strangle | Covered Call Vs Long Strangle | |
| Short Call Condor Vs Collar Strategy | Covered Call Vs Collar Strategy | |
| Short Call Condor Vs Long Straddle | Covered Call Vs Long Straddle | |
| Short Call Condor Vs Short Straddle | Covered Call Vs Short Straddle | |
| Short Call Condor Vs Long Call Butterfly | Covered Call Vs Long Call Butterfly | |
| Short Call Condor Vs Short Call Butterfly | Covered Call Vs Short Call Butterfly | |
| Short Call Condor Vs Bear Call Spread | Covered Call Vs Bear Call Spread | |
| Short Call Condor Vs Bear Put Spread | Covered Call Vs Bear Put Spread | |
| Short Call Condor Vs Bull Call Spread | Covered Call Vs Bull Put Spread | |
| Short Call Condor Vs Bull Put Spread | Covered Call Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Covered Call Vs Short Call Condor option strategies.
At the same time, if you are in a neutral market situation and have a limited risk appetite, then Short 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.
