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 Long Call Condor Vs Box Spread 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 Long Call Condor Vs Box Spread 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 Long Call Condor Vs Box Spread comparison:
| Comparison Aspect | Box Spread | Long Call Condor |
| View |  |  |
| Strategy Introduction | Box Spread is an arbitrage strategy in which two complementary positions are taken that balance out the risk of each other. This makes the box spread an almost risk-free strategy...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 has the obligation to keep the positions open till they reach their respective expirations. | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. |
| Market Position | Neutral | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call, Put | Call |
| Number of Positions | 4 | 4 |
| Action Needed | 1 Long ITM Call, 1 Short OTM Call, 1 Long ITM Put, 1 Short OTM Put | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call |
| Risk for You | None | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | NA | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Choose the Correct Stike Prices | Let Options Expire Worthlessly |
| Investor Expectation | Short-term demand shifts of the options in the market. | Little or no movement in the price of the underlying asset |
| Strategy Summary | Complicated | Straight-Forward |
| Advantages | Risk Free, Direction Neutral | Profits in Low Volatilty, Limited Risk |
| Disadvantages | Limited Profit, High Margin Maintenance, Positions cannot be closed before expiry. | High Premium, Selection of Correct Strike Prices is Paramount. |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 0 | 1 |
| Also called as | NA | NA |
| More Comparisons | Box Spread Vs Short Put | Long Call Condor Vs Short Put |
| Box Spread Vs Long Combo | Long Call Condor Vs Long Combo | |
| Box Spread Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Box Spread Vs Long Put | Long Call Condor Vs Long Put | |
| Box Spread Vs Long Call | Long Call Condor Vs Long Call | |
| Box Spread Vs Covered Call | Long Call Condor Vs Covered Call | |
| Box Spread Vs Covered Put | Long Call Condor Vs Covered Put | |
| Box Spread Vs Protective Call | Long Call Condor Vs Protective Call | |
| Box Spread Vs Short Box | Long Call Condor Vs Short Box | |
| Box Spread Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Box Spread Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Box Spread Vs Short Call | Long Call Condor Vs Box Spread | |
| Box Spread Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Box Spread Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Box Spread Vs Collar Strategy | Long Call Condor Vs Collar Strategy | |
| Box Spread Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Box Spread Vs Short Straddle | Long Call Condor Vs Short Straddle | |
| Box Spread Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Box Spread Vs Short Call Butterfly | Long Call Condor Vs Short Call Butterfly | |
| Box Spread Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Box Spread Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Box Spread Vs Bull Call Spread | Long Call Condor Vs Bull Call Spread | |
| Box Spread Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Condor Vs Box Spread 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.
Furthermore, if you are in a neutral market situation and are looking for consistent but limited profits for your share market trades, then you can opt to go for the Box spread 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.
