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 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 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 Vs Box Spread comparison:
| Comparison Aspect | Long Call | Box Spread |
| View |  |  |
| Strategy Introduction | In Long Call Strategy, the trader enters into a contract to buy a call option when he is bullish towards the market. The trader anticipates that the price of the security will go up in the future. However, he does not want to take the risk of buying the security outright...more | 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 |
| Investor Obligation | The trader has the right to buy a security at a future date at a predefined price. The term long itself means buying a security or buying an option. | The trader has the obligation to keep the positions open till they reach their respective expirations. |
| Market Position | Bullish | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Call, Put |
| Number of Positions | 1 | 4 |
| Action Needed | Buy Call Option | 1 Long ITM Call, 1 Short OTM Call, 1 Long ITM Put, 1 Short OTM Put |
| Risk for You | Limited to Premium | None |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price PLUS Premium | NA |
| Investor Intention | Exercise Option if Profitable, Let it go otherwise | Choose the Correct Stike Prices |
| Investor Expectation | Prices of Assets Go Up Sharply | Short-term demand shifts of the options in the market. |
| Strategy Summary | Attractive | Complicated |
| Advantages | Unlimited Profits, Limited Loss, Low Investment | Risk Free, Direction Neutral |
| Disadvantages | Premium may eat up the Profits | Limited Profit, High Margin Maintenance, Positions cannot be closed before expiry. |
| Market Scenarios - Profit | 1 | 2 |
| Market Scenarios - Loss | 1 | 0 |
| Also called as | NA | NA |
| More Comparisons | Long Call Vs Long Put | Box Spread Vs Short Put |
| Long Call Vs Long Combo | Box Spread Vs Long Combo | |
| Long Call Vs Synthetic Call | Box Spread Vs Synthetic Call | |
| Long Call Vs Short Call | Box Spread Vs Long Put | |
| Long Call Vs Short Put | Box Spread Vs Long Call | |
| Long Call Vs Covered Call | Box Spread Vs Covered Call | |
| Long Call Vs Covered Put | Box Spread Vs Covered Put | |
| Long Call Vs Protective Call | Box Spread Vs Protective Call | |
| Long Call Vs Short Box | Box Spread Vs Short Box | |
| Long Call Vs Long Call Condor | Box Spread Vs Long Call Condor | |
| Long Call Vs Short Call Condor | Box Spread Vs Short Call Condor | |
| Long Call Vs Box Spread | Box Spread Vs Short Call | |
| Long Call Vs Short Strangle | Box Spread Vs Short Strangle | |
| Long Call Vs Long Strangle | Box Spread Vs Long Strangle | |
| Long Call Vs Collar Strategy | Box Spread Vs Collar Strategy | |
| Long Call Vs Long Straddle | Box Spread Vs Long Straddle | |
| Long Call Vs Short Straddle | Box Spread Vs Short Straddle | |
| Long Call Vs Long Call Butterfly | Box Spread Vs Long Call Butterfly | |
| Long Call Vs Short Call Butterfly | Box Spread Vs Short Call Butterfly | |
| Long Call Vs Bear Call Spread | Box Spread Vs Bear Call Spread | |
| Long Call Vs Bear Put Spread | Box Spread Vs Bear Put Spread | |
| Long Call Vs Bull Call Spread | Box Spread Vs Bull Call Spread | |
| Long Call Vs Bull Put Spread | Box Spread Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Call Vs Box Spread option strategies.
As mentioned above, if you are in a Bullish market situation and want to make unlimited profits on your trades, then Long Call is one of the options trading strategies you can opt for. The risk involved in this strategy is more than limited and thus, the strategy can only work for higher profits if you have the experience to run similar strategies in the past.
At the same time, 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.
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.
