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 Put 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 Put 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 Put Vs Long Call Condor comparison:
| Comparison Aspect | Long Call Condor | Covered Put |
| 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 | Covered Put is the options trading strategy which involves shorting the underlying asset, along with selling a put option on the same number of shares. By doing this, the trader is able to...more |
| Investor Obligation | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. | If the price of the stock goes below the strike price of the put option, the put option will be expired and will have to be brought back. |
| Market Position | Neutral | Neutral or Slightly Bearish |
| Strategy Level Suitable for | Intermediates | Experts |
| Options Traded | Call | Put |
| Number of Positions | 4 | 2 |
| Action Needed | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call | Short on Underlying and Short Put |
| 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 | Futures Price + Premium Received |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Little or no movement in the price of the underlying asset | Prices of Assets Go Down Slightly |
| Strategy Summary | Straight-Forward | Steady Profits with Caution |
| Advantages | Profits in Low Volatilty, Limited Risk | Income Generation, Reduced Losses |
| Disadvantages | High Premium, Selection of Correct Strike Prices is Paramount. | Unlimited Risk in specific situations |
| Market Scenarios - Profit | 1 | 2 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | Married Put |
| More Comparisons | Long Call Condor Vs Short Put | Covered Put Vs Short Put |
| Long Call Condor Vs Long Combo | Covered Put Vs Long Combo | |
| Long Call Condor Vs Synthetic Call | Covered Put Vs Synthetic Call | |
| Long Call Condor Vs Long Put | Covered Put Vs Long Put | |
| Long Call Condor Vs Long Call | Covered Put Vs Long Call | |
| Long Call Condor Vs Covered Call | Covered Put Vs Covered Call | |
| Long Call Condor Vs Covered Put | Covered Put Vs Short Call | |
| Long Call Condor Vs Protective Call | Covered Put Vs Protective Call | |
| Long Call Condor Vs Short Box | Covered Put Vs Short Box | |
| Long Call Condor Vs Short Call | Covered Put Vs Long Call Condor | |
| Long Call Condor Vs Short Call Condor | Covered Put Vs Short Call Condor | |
| Long Call Condor Vs Box Spread | Covered Put Vs Box Spread | |
| Long Call Condor Vs Short Strangle | Covered Put Vs Short Strangle | |
| Long Call Condor Vs Long Strangle | Covered Put Vs Long Strangle | |
| Long Call Condor Vs Collar Strategy | Covered Put Vs Collar Strategy | |
| Long Call Condor Vs Long Straddle | Covered Put Vs Long Straddle | |
| Long Call Condor Vs Short Straddle | Covered Put Vs Short Straddle | |
| Long Call Condor Vs Long Call Butterfly | Covered Put Vs Long Call Butterfly | |
| Long Call Condor Vs Short Call Butterfly | Covered Put Vs Short Call Butterfly | |
| Long Call Condor Vs Bear Call Spread | Covered Put Vs Bear Call Spread | |
| Long Call Condor Vs Bear Put Spread | Covered Put Vs Bear Put Spread | |
| Long Call Condor Vs Bull Call Spread | Covered Put Vs Bull Call Spread | |
| Long Call Condor Vs Bull Put Spread | Covered Put Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Covered Put 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.
If you are looking at a bearish market momentum and are open towards high risk with consistent but limited profits, then Covered Put is suitable for your trading style.
Furthermore, as told above, it also depends on the market situation.
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