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 Strangle 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 Strangle 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 Strangle Vs Short Call Condor comparison:
| Comparison Aspect | Long Strangle | Short Call Condor |
| View |  |  |
| Strategy Introduction | The long strangle strategy helps the trader to take advantage of the volatility in the market. It is a trend neutral strategy, so the trader does not need to be certain of the direction...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 | It is a trend neutral strategy, so the trader does not need to be certain of the direction of the price movement. | In case of limited price movement, the trader supposedlly incurs a loss. |
| Market Position | Neutral | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call, Put | Call |
| Number of Positions | 2 | 4 |
| Action Needed | One OTM Put, One OTM Call | 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 Point = Strike Price of Put - Net Premium Upper Breakeven Point = Strike Price of Call + Net Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Both call and put options expire worthlessly | Let Options Expire Worthlessly |
| Investor Expectation | Market Shows High Volatility | High Implied Volatility |
| Strategy Summary | Attractive | Almost a Hero (Limited Profit) |
| Advantages | Less Expensive, Limited Risk, Unlimited Gain | Low Risk, Low Initial Capital, Profit Chances High |
| Disadvantages | Price Movement has to be Big | High Premium, Limited Profit |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Long Strangle Vs Short Put | Short Call Condor Vs Short Put |
| Long Strangle Vs Long Combo | Short Call Condor Vs Long Combo | |
| Long Strangle Vs Synthetic Call | Short Call Condor Vs Synthetic Call | |
| Long Strangle Vs Long Put | Short Call Condor Vs Long Put | |
| Long Strangle Vs Long Call | Short Call Condor Vs Long Call | |
| Long Strangle Vs Covered Call | Short Call Condor Vs Covered Call | |
| Long Strangle Vs Covered Put | Short Call Condor Vs Covered Put | |
| Long Strangle Vs Protective Call | Short Call Condor Vs Protective Call | |
| Long Strangle Vs Short Box | Short Call Condor Vs Short Box | |
| Long Strangle Vs Long Call Condor | Short Call Condor Vs Long Call Condor | |
| Long Strangle Vs Short Call Condor | Short Call Condor Vs Short Call | |
| Long Strangle Vs Box Spread | Short Call Condor Vs Box Spread | |
| Long Strangle Vs Short Strangle | Short Call Condor Vs Short Strangle | |
| Long Strangle Vs Short Call | Short Call Condor Vs Long Strangle | |
| Long Strangle Vs Collar Strategy | Short Call Condor Vs Collar Strategy | |
| Long Strangle Vs Long Straddle | Short Call Condor Vs Long Straddle | |
| Long Strangle Vs Short Straddle | Short Call Condor Vs Short Straddle | |
| Long Strangle Vs Long Call Butterfly | Short Call Condor Vs Long Call Butterfly | |
| Long Strangle Vs Short Call Butterfly | Short Call Condor Vs Short Call Butterfly | |
| Long Strangle Vs Bear Call Spread | Short Call Condor Vs Bear Call Spread | |
| Long Strangle Vs Bear Put Spread | Short Call Condor Vs Bear Put Spread | |
| Long Strangle Vs Bull Call Spread | Short Call Condor Vs Bull Call Spread | |
| Long Strangle Vs Bull Put Spread | Short Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Long Strangle Vs Short Call Condor option strategies.
At the same time, 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 Strangle strategy. Just remember, you need to be aware of the “right” strike prices for optimal gains.
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.
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.
