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 Synthetic Call 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 Synthetic Call 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 Synthetic Call comparison:
| Comparison Aspect | Long Call Condor | Synthetic 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 | Synthetic Call is an options strategy in which an underlying asset is combined with a put option to protect against depreciation in the value of the underlying asset. The overall effect is similar to...more |
| Investor Obligation | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. | Stay with the position |
| Market Position | Neutral | Bullish |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Call | Put |
| Number of Positions | 4 | 2 (Underlying + Put) |
| Action Needed | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call | Holds a long position in an underlying asset and a put option on the same stock |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium | Underlying Price + Put Premium |
| Investor Intention | Let Options Expire Worthlessly | Save Transaction Costs, Stay Protected from downward market movement. |
| Investor Expectation | Little or no movement in the price of the underlying asset | Prices of the Assets to Go Up |
| Strategy Summary | Straight-Forward | Profitable |
| Advantages | Profits in Low Volatilty, Limited Risk | Dividends on Stocks, Limited Risk, Unlimited Profit |
| Disadvantages | High Premium, Selection of Correct Strike Prices is Paramount. | Chances of loss if the underlying goes down |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Call Condor Vs Short Put | Synthetic Call Vs Short Put |
| Long Call Condor Vs Long Combo | Synthetic Call Vs Long Combo | |
| Long Call Condor Vs Synthetic Call | Synthetic Call Vs Short Call | |
| Long Call Condor Vs Long Put | Synthetic Call Vs Long Put | |
| Long Call Condor Vs Long Call | Synthetic Call Vs Long Call | |
| Long Call Condor Vs Covered Call | Synthetic Call Vs Covered Call | |
| Long Call Condor Vs Covered Put | Synthetic Call Vs Covered Put | |
| Long Call Condor Vs Protective Call | Synthetic Call Vs Protective Call | |
| Long Call Condor Vs Short Box | Synthetic Call Vs Short Box | |
| Long Call Condor Vs Short Call | Synthetic Call Vs Long Call Condor | |
| Long Call Condor Vs Short Call Condor | Synthetic Call Vs Short Call Condor | |
| Long Call Condor Vs Box Spread | Synthetic Call Vs Box Spread | |
| Long Call Condor Vs Short Strangle | Synthetic Call Vs Short Strangle | |
| Long Call Condor Vs Long Strangle | Synthetic Call Vs Long Strangle | |
| Long Call Condor Vs Collar Strategy | Synthetic Call Vs Collar Strategy | |
| Long Call Condor Vs Long Straddle | Synthetic Call Vs Long Straddle | |
| Long Call Condor Vs Short Straddle | Synthetic Call Vs Short Straddle | |
| Long Call Condor Vs Long Call Butterfly | Synthetic Call Vs Long Call Butterfly | |
| Long Call Condor Vs Short Call Butterfly | Synthetic Call Vs Short Call Butterfly | |
| Long Call Condor Vs Bear Call Spread | Synthetic Call Vs Bear Call Spread | |
| Long Call Condor Vs Bear Put Spread | Synthetic Call Vs Bear Put Spread | |
| Long Call Condor Vs Bull Call Spread | Synthetic Call Vs Bull Call Spread | |
| Long Call Condor Vs Bull Put Spread | Synthetic Call Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Condor Vs Synthetic Call 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 a limited risk with a potential of unlimited profits, then Synthetic Call options strategy is definitely a positive go for you.
Be aware of all the related aspects (like the ones listed above) and then make a choice for yourself.
Furthermore, as told above, it also depends on the market situation.
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