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 Short Box 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 Short Box 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 Short Box Vs Long Call Condor comparison:
| Comparison Aspect | Long Call Condor | Short Box |
| View |  |  |
| Strategy Introduction | 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 | Short Box involves selling a bull call spread along with a bear put spread, both at the same strike prices and expiration date, so that both the spreads balance each other out and create an arbitrage...more |
| Investor Obligation | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. | Recognize Put Call Parity distrubance as soon as possible and take positions to capture the movement. |
| Market Position | Neutral | Neutral |
| Strategy Level Suitable for | Intermediates | Experts |
| Options Traded | Call | 1 Short ITM Call, 1 Long OTM Call, 1 Short ITM Put, 1 Long OTM Put |
| Number of Positions | 4 | 4 |
| Action Needed | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call | Sell bull call spread along with a Bear put spread |
| Risk for You | Limited | None |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium | Not Required, Almost No Risk/Loss |
| Investor Intention | Let Options Expire Worthlessly | Take Positions at the right time and capture the profit. |
| Investor Expectation | Little or no movement in the price of the underlying asset | Profits generated from the strategy will be enough to compensate for the commissions and brokerages paid |
| Strategy Summary | Straight-Forward | Complicated |
| Advantages | Profits in Low Volatilty, Limited Risk | No Capital Needed, Zero Risk |
| Disadvantages | High Premium, Selection of Correct Strike Prices is Paramount. | Low Profit |
| Market Scenarios - Profit | 1 | 3 |
| Market Scenarios - Loss | 1 | 0 |
| Also called as | NA | NA |
| More Comparisons | Long Call Condor Vs Short Put | Short Box Vs Short Put |
| Long Call Condor Vs Long Combo | Short Box Vs Long Combo | |
| Long Call Condor Vs Synthetic Call | Short Box Vs Synthetic Call | |
| Long Call Condor Vs Long Put | Short Box Vs Long Put | |
| Long Call Condor Vs Long Call | Short Box Vs Long Call | |
| Long Call Condor Vs Covered Call | Short Box Vs Covered Call | |
| Long Call Condor Vs Covered Put | Short Box Vs Covered Put | |
| Long Call Condor Vs Protective Call | Short Box Vs Protective Call | |
| Long Call Condor Vs Short Box | Short Box Vs Short Call | |
| Long Call Condor Vs Short Call | Short Box Vs Long Call Condor | |
| Long Call Condor Vs Short Call Condor | Short Box Vs Short Call Condor | |
| Long Call Condor Vs Box Spread | Short Box Vs Box Spread | |
| Long Call Condor Vs Short Strangle | Short Box Vs Short Strangle | |
| Long Call Condor Vs Long Strangle | Short Box Vs Long Strangle | |
| Long Call Condor Vs Collar Strategy | Short Box Vs Collar Strategy | |
| Long Call Condor Vs Long Straddle | Short Box Vs Long Straddle | |
| Long Call Condor Vs Short Straddle | Short Box Vs Short Straddle | |
| Long Call Condor Vs Long Call Butterfly | Short Box Vs Long Call Butterfly | |
| Long Call Condor Vs Short Call Butterfly | Short Box Vs Short Call Butterfly | |
| Long Call Condor Vs Bear Call Spread | Short Box Vs Bear Call Spread | |
| Long Call Condor Vs Bear Put Spread | Short Box Vs Bear Put Spread | |
| Long Call Condor Vs Bull Call Spread | Short Box Vs Bull Call Spread | |
| Long Call Condor Vs Bull Put Spread | Short Box Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Short Box Vs Long Call Condor option strategies.
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.
Remember, the Short box strategy has no risk but provides a consistent (and limited) profits to your trades. To add to that, it is a relatively complex strategy too.
Furthermore, as said above, it also depends on the market situation.
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