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 Call Butterfly 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 Call Butterfly 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 Call Butterfly Vs Long Call Condor comparison:
| Comparison Aspect | Short Call Butterfly | Long Call Condor |
| View |  |  |
| Strategy Introduction | Short Call Butterfly is the options strategy which is used when the trader expects a lot of volatility in the market. It is the opposite of the long call butterfly, in which the investor expects...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 | It is necessary that the strike prices of the in-the-money and out-of-the-money call options are equidistant from the at-the-money call options, and all the options have the same expiration date. | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. |
| Market Position | Neutral | Neutral |
| Strategy Level Suitable for | Intermediates | Intermediates |
| Options Traded | Call | Call |
| Number of Positions | 4 | 4 |
| Action Needed | 2 ATM, 1 ITM, 1 OTM Calls | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Lower Break-even = Lower Strike Price + Net Premium Upper Break-even = Higher Strike Price - Net 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 | High Market Volatility | Little or no movement in the price of the underlying asset |
| Strategy Summary | Profit in Unsure Market Situations | Straight-Forward |
| Advantages | Limited Exposure, Low Investment | Profits in Low Volatilty, Limited Risk |
| Disadvantages | Low Returns, Requires Significant Market Movement | High Premium, Selection of Correct Strike Prices is Paramount. |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Short Call Butterfly Vs Short Put | Long Call Condor Vs Short Put |
| Short Call Butterfly Vs Long Combo | Long Call Condor Vs Long Combo | |
| Short Call Butterfly Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Short Call Butterfly Vs Long Put | Long Call Condor Vs Long Put | |
| Short Call Butterfly Vs Long Call | Long Call Condor Vs Long Call | |
| Short Call Butterfly Vs Covered Call | Long Call Condor Vs Covered Call | |
| Short Call Butterfly Vs Covered Put | Long Call Condor Vs Covered Put | |
| Short Call Butterfly Vs Protective Call | Long Call Condor Vs Protective Call | |
| Short Call Butterfly Vs Short Box | Long Call Condor Vs Short Box | |
| Short Call Butterfly Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Short Call Butterfly Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Short Call Butterfly Vs Box Spread | Long Call Condor Vs Box Spread | |
| Short Call Butterfly Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Short Call Butterfly Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Short Call Butterfly Vs Collar Strategy | Long Call Condor Vs Collar Strategy | |
| Short Call Butterfly Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Short Call Butterfly Vs Short Straddle | Long Call Condor Vs Short Straddle | |
| Short Call Butterfly Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Short Call Butterfly Vs Short Call | Long Call Condor Vs Short Call Butterfly | |
| Short Call Butterfly Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Short Call Butterfly Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Short Call Butterfly Vs Bull Call Spread | Long Call Condor Vs Bull Call Spread | |
| Short Call Butterfly Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Call Butterfly Vs Long Call Condor option strategies.
Furthermore, if you as a trader are expecting price movement (without any idea of the direction) within a neutral market momentum – then short call butterfly is an optimal strategy for you.
There is a limited amount of risk involved and you can expect limited profit only in this options strategy.
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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