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 Condor Vs Box Spread 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 Condor Vs Box Spread 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 Condor Vs Box Spread comparison:
| Comparison Aspect | Box Spread | Short Call Condor |
| View |  |  |
| Strategy Introduction | Box Spread is an arbitrage strategy in which two complementary positions are taken that balance out the risk of each other. This makes the box spread an almost risk-free strategy...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 has the obligation to keep the positions open till they reach their respective expirations. | 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 | 4 | 4 |
| Action Needed | 1 Long ITM Call, 1 Short OTM Call, 1 Long ITM Put, 1 Short OTM Put | 1 Short ITM Call, 1 Long ITM Call, 1 Long OTM Call, 1 Short OTM Call |
| Risk for You | None | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | NA | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium |
| Investor Intention | Choose the Correct Stike Prices | Let Options Expire Worthlessly |
| Investor Expectation | Short-term demand shifts of the options in the market. | High Implied Volatility |
| Strategy Summary | Complicated | Almost a Hero (Limited Profit) |
| Advantages | Risk Free, Direction Neutral | Low Risk, Low Initial Capital, Profit Chances High |
| Disadvantages | Limited Profit, High Margin Maintenance, Positions cannot be closed before expiry. | High Premium, Limited Profit |
| Market Scenarios - Profit | 2 | 1 |
| Market Scenarios - Loss | 0 | 1 |
| Also called as | NA | NA |
| More Comparisons | Box Spread Vs Short Put | Short Call Condor Vs Short Put |
| Box Spread Vs Long Combo | Short Call Condor Vs Long Combo | |
| Box Spread Vs Synthetic Call | Short Call Condor Vs Synthetic Call | |
| Box Spread Vs Long Put | Short Call Condor Vs Long Put | |
| Box Spread Vs Long Call | Short Call Condor Vs Long Call | |
| Box Spread Vs Covered Call | Short Call Condor Vs Covered Call | |
| Box Spread Vs Covered Put | Short Call Condor Vs Covered Put | |
| Box Spread Vs Protective Call | Short Call Condor Vs Protective Call | |
| Box Spread Vs Short Box | Short Call Condor Vs Short Box | |
| Box Spread Vs Long Call Condor | Short Call Condor Vs Long Call Condor | |
| Box Spread Vs Short Call Condor | Short Call Condor Vs Short Call | |
| Box Spread Vs Short Call | Short Call Condor Vs Box Spread | |
| Box Spread Vs Short Strangle | Short Call Condor Vs Short Strangle | |
| Box Spread Vs Long Strangle | Short Call Condor Vs Long Strangle | |
| Box Spread Vs Collar Strategy | Short Call Condor Vs Collar Strategy | |
| Box Spread Vs Long Straddle | Short Call Condor Vs Long Straddle | |
| Box Spread Vs Short Straddle | Short Call Condor Vs Short Straddle | |
| Box Spread Vs Long Call Butterfly | Short Call Condor Vs Long Call Butterfly | |
| Box Spread Vs Short Call Butterfly | Short Call Condor Vs Short Call Butterfly | |
| Box Spread Vs Bear Call Spread | Short Call Condor Vs Bear Call Spread | |
| Box Spread Vs Bear Put Spread | Short Call Condor Vs Bear Put Spread | |
| Box Spread Vs Bull Call Spread | Short Call Condor Vs Bull Call Spread | |
| Box Spread Vs Bull Put Spread | Short Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Short Call Condor Vs Box Spread 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 consistent but limited profits for your share market trades, then you can opt to go for the Box spread strategy.
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.
