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 Put 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 Long Put 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 Long Put Vs Short Call Condor comparison:
| Comparison Aspect | Long Put | Short Call Condor |
| View |  |  |
| Strategy Introduction | Long Put is used when the trader has a bearish view on the market and expects the price of the asset to go down. He will then wait for the prices to go down and then exercise his option...more | 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 |
| Investor Obligation | The strategy gives the trader a right to buy the put option on expiry, but not the obligation. The trader may choose to buy the option or not. | In case of limited price movement, the trader supposedlly incurs a loss. |
| Market Position | Bearish | Neutral |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Put | Call |
| Number of Positions | 1 | 4 |
| Action Needed | Buy Put Option | 1 Short ITM Call, 1 Long ITM Call, 1 Long OTM Call, 1 Short OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Strike Price MINUS Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Let Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Prices of Assets Go Down | High Implied Volatility |
| Strategy Summary | Effective | Almost a Hero (Limited Profit) |
| Advantages | Unlimited Profits, Profits possible even in Bearish Market | Low Risk, Low Initial Capital, Profit Chances High |
| Disadvantages | High Premium | High Premium, Limited Profit |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Put Vs Short Put | Short Call Condor Vs Short Put |
| Long Put Vs Long Combo | Short Call Condor Vs Long Combo | |
| Long Put Vs Synthetic Call | Short Call Condor Vs Synthetic Call | |
| Long Put Vs Short Call | Short Call Condor Vs Long Put | |
| Long Put Vs Long Call | Short Call Condor Vs Long Call | |
| Long Put Vs Covered Call | Short Call Condor Vs Covered Call | |
| Long Put Vs Covered Put | Short Call Condor Vs Covered Put | |
| Long Put Vs Protective Call | Short Call Condor Vs Protective Call | |
| Long Put Vs Short Box | Short Call Condor Vs Short Box | |
| Long Put Vs Long Call Condor | Short Call Condor Vs Long Call Condor | |
| Long Put Vs Short Call Condor | Short Call Condor Vs Short Call | |
| Long Put Vs Box Spread | Short Call Condor Vs Box Spread | |
| Long Put Vs Short Strangle | Short Call Condor Vs Short Strangle | |
| Long Put Vs Long Strangle | Short Call Condor Vs Long Strangle | |
| Long Put Vs Collar Strategy | Short Call Condor Vs Collar Strategy | |
| Long Put Vs Long Straddle | Short Call Condor Vs Long Straddle | |
| Long Put Vs Short Straddle | Short Call Condor Vs Short Straddle | |
| Long Put Vs Long Call Butterfly | Short Call Condor Vs Long Call Butterfly | |
| Long Put Vs Short Call Butterfly | Short Call Condor Vs Short Call Butterfly | |
| Long Put Vs Bear Call Spread | Short Call Condor Vs Bear Call Spread | |
| Long Put Vs Bear Put Spread | Short Call Condor Vs Bear Put Spread | |
| Long Put Vs Bull Call Spread | Short Call Condor Vs Bull Call Spread | |
| Long Put Vs Bull Put Spread | Short Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Long Put Vs Short Call Condor option strategies.
As mentioned above, if you are a beginner level trader and are looking for unlimited profits with limited risk – it makes sense for you to employ the Long Put Option Strategy. 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.
Thus, be aware of all the related aspects (like the ones listed above) and then make a choice for yourself.
Furthermore, as said 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.
