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 Straddle 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 Straddle 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 Straddle Vs Short Call Condor comparison:
| Comparison Aspect | Long Straddle | Short Call Condor |
| View |  |  |
| Strategy Introduction | Long Straddle comes into play when the trader expects the market to move sharply, however, the direction of the movement cannot be predicted. The purpose of the strategy to allow the traders to benefit from volatile markets...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 trader should be able to trade based on his/her conviction that the markets will move, without being concerned about the direction of the movement. | In case of limited price movement, the trader supposedlly incurs a loss. |
| Market Position | Neutral | Neutral |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Call, Put | Call |
| Number of Positions | 2 | 4 |
| Action Needed | 1 ATM Call, 1 ATM Put | 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 | Lower Breakeven = Strike Price of Put - Net Premium Upper breakeven = Strike Price of Call + Net Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Put & Call Options Expire Worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Sharp Market Movement | High Implied Volatility |
| Strategy Summary | Excellent & Simple | Almost a Hero (Limited Profit) |
| Advantages | Uni-Directional Profit, Unlimited Gains | Low Risk, Low Initial Capital, Profit Chances High |
| Disadvantages | High Premium | High Premium, Limited Profit |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Straddle Vs Short Put | Short Call Condor Vs Short Put |
| Long Straddle Vs Long Combo | Short Call Condor Vs Long Combo | |
| Long Straddle Vs Synthetic Call | Short Call Condor Vs Synthetic Call | |
| Long Straddle Vs Long Put | Short Call Condor Vs Long Put | |
| Long Straddle Vs Long Call | Short Call Condor Vs Long Call | |
| Long Straddle Vs Covered Call | Short Call Condor Vs Covered Call | |
| Long Straddle Vs Covered Put | Short Call Condor Vs Covered Put | |
| Long Straddle Vs Protective Call | Short Call Condor Vs Protective Call | |
| Long Straddle Vs Short Box | Short Call Condor Vs Short Box | |
| Long Straddle Vs Long Call Condor | Short Call Condor Vs Long Call Condor | |
| Long Straddle Vs Short Call Condor | Short Call Condor Vs Short Call | |
| Long Straddle Vs Box Spread | Short Call Condor Vs Box Spread | |
| Long Straddle Vs Short Strangle | Short Call Condor Vs Short Strangle | |
| Long Straddle Vs Long Strangle | Short Call Condor Vs Long Strangle | |
| Long Straddle Vs Collar Strategy | Short Call Condor Vs Collar Strategy | |
| Long Straddle Vs Short Call | Short Call Condor Vs Long Straddle | |
| Long Straddle Vs Short Straddle | Short Call Condor Vs Short Straddle | |
| Long Straddle Vs Long Call Butterfly | Short Call Condor Vs Long Call Butterfly | |
| Long Straddle Vs Short Call Butterfly | Short Call Condor Vs Short Call Butterfly | |
| Long Straddle Vs Bear Call Spread | Short Call Condor Vs Bear Call Spread | |
| Long Straddle Vs Bear Put Spread | Short Call Condor Vs Bear Put Spread | |
| Long Straddle Vs Bull Put Spread | Short Call Condor Vs Bull Call Spread | |
| Long Straddle Vs Bull Put Spread | Short Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Long Straddle Vs Short Call Condor option strategies.
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.
However, if you are in a neutral market situation and are looking for unlimited profits from your share market trades, then you can opt to go for the Long Straddle strategy.
There is a limited amount of risk involved as well, however, there are good chances of high profits if the strategy is executed well.
Furthermore, as told above, it also depends on the market situation.
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