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 Protective Call Vs Long 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 Protective Call Vs Long 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 Protective Call Vs Long Call Condor comparison:
| Comparison Aspect | Protective Call | Long Call Condor |
| View |  |  |
| Strategy Introduction | A Protective call combines an existing short position on an underlying asset with buying of call options, to safeguard against the price rise against the expectations...more | 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 |
| Investor Obligation | Protective call works as a protection against the price reversal and is like an insurance policy | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. |
| Market Position | Bearish | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Call |
| Number of Positions | 2 | 4 |
| Action Needed | Short Position on Buy Call Option | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Unlimited | Limited |
| Break Even Point for Investor | Underlying Price - Call Premium | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Protect himself from extra losses if Price goes Up | Let Options Expire Worthlessly |
| Investor Expectation | Market Prices to Go Down | Little or no movement in the price of the underlying asset |
| Strategy Summary | Experience Helps | Straight-Forward |
| Advantages | Unlimited Profit, limited Risk | Profits in Low Volatilty, Limited Risk |
| Disadvantages | Reduced Profits due to the Premium paid for Call Option. | High Premium, Selection of Correct Strike Prices is Paramount. |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | Synthetic Long Put | NA |
| More Comparisons | Protective Call Vs Short Put | Long Call Condor Vs Short Put |
| Protective Call Vs Long Combo | Long Call Condor Vs Long Combo | |
| Protective Call Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Protective Call Vs Long Put | Long Call Condor Vs Long Put | |
| Protective Call Vs Long Call | Long Call Condor Vs Long Call | |
| Protective Call Vs Covered Call | Long Call Condor Vs Covered Call | |
| Protective Call Vs Covered Put | Long Call Condor Vs Covered Put | |
| Protective Call Vs Short Call | Long Call Condor Vs Protective Call | |
| Protective Call Vs Short Box | Long Call Condor Vs Short Box | |
| Protective Call Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Protective Call Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Protective Call Vs Box Spread | Long Call Condor Vs Box Spread | |
| Protective Call Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Protective Call Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Protective Call Vs Collar Strategy | Long Call Condor Vs Collar Strategy | |
| Protective Call Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Protective Call Vs Short Straddle | Long Call Condor Vs Short Straddle | |
| Protective Call Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Protective Call Vs Short Call Butterfly | Long Call Condor Vs Short Call Butterfly | |
| Protective Call Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Protective Call Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Protective Call Vs Bull Call Spread | Long Call Condor Vs Bull Call Spread | |
| Protective Call Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Protective Call Vs Long Call Condor option strategies.
If you are looking at a bearish market momentum and want to take a limited risk with an eye on unlimited profits, then the protective call is the strategy you must be using.
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.
The strategy comes with a limited profit potential.
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