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 Synthetic Call 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 Synthetic Call 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 Synthetic Call comparison:
| Comparison Aspect | Short Call Condor | Synthetic Call |
| View |  |  |
| Strategy Introduction | 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 | Synthetic Call is an options strategy in which an underlying asset is combined with a put option to protect against depreciation in the value of the underlying asset. The overall effect is similar to...more |
| Investor Obligation | In case of limited price movement, the trader supposedlly incurs a loss. | Stay with the position |
| Market Position | Neutral | Bullish |
| Strategy Level Suitable for | Intermediates | Beginners |
| Options Traded | Call | Put |
| Number of Positions | 4 | 2 (Underlying + Put) |
| Action Needed | 1 Short ITM Call, 1 Long ITM Call, 1 Long OTM Call, 1 Short OTM Call | Holds a long position in an underlying asset and a put option on the same stock |
| Risk for You | Limited | Limited |
| Profit Potential | Limited | Unlimited |
| Break Even Point for Investor | Lower Breakeven = Lower Strike Price + Net Premium Upper breakeven = Higher Strike Price - Net Premium | Underlying Price + Put Premium |
| Investor Intention | Let Options Expire Worthlessly | Save Transaction Costs, Stay Protected from downward market movement. |
| Investor Expectation | High Implied Volatility | Prices of the Assets to Go Up |
| Strategy Summary | Almost a Hero (Limited Profit) | Profitable |
| Advantages | Low Risk, Low Initial Capital, Profit Chances High | Dividends on Stocks, Limited Risk, Unlimited Profit |
| Disadvantages | High Premium, Limited Profit | Chances of loss if the underlying goes down |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | NA | NA |
| More Comparisons | Short Call Condor Vs Short Put | Synthetic Call Vs Short Put |
| Short Call Condor Vs Long Combo | Synthetic Call Vs Long Combo | |
| Short Call Condor Vs Synthetic Call | Synthetic Call Vs Short Call | |
| Short Call Condor Vs Long Put | Synthetic Call Vs Long Put | |
| Short Call Condor Vs Long Call | Synthetic Call Vs Long Call | |
| Short Call Condor Vs Covered Call | Synthetic Call Vs Covered Call | |
| Short Call Condor Vs Covered Put | Synthetic Call Vs Covered Put | |
| Short Call Condor Vs Protective Call | Synthetic Call Vs Protective Call | |
| Short Call Condor Vs Short Box | Synthetic Call Vs Short Box | |
| Short Call Condor Vs Long Call Condor | Synthetic Call Vs Long Call Condor | |
| Short Call Condor Vs Short Call | Synthetic Call Vs Short Call Condor | |
| Short Call Condor Vs Box Spread | Synthetic Call Vs Box Spread | |
| Short Call Condor Vs Short Strangle | Synthetic Call Vs Short Strangle | |
| Short Call Condor Vs Long Strangle | Synthetic Call Vs Long Strangle | |
| Short Call Condor Vs Collar Strategy | Synthetic Call Vs Collar Strategy | |
| Short Call Condor Vs Long Straddle | Synthetic Call Vs Long Straddle | |
| Short Call Condor Vs Short Straddle | Synthetic Call Vs Short Straddle | |
| Short Call Condor Vs Long Call Butterfly | Synthetic Call Vs Long Call Butterfly | |
| Short Call Condor Vs Short Call Butterfly | Synthetic Call Vs Short Call Butterfly | |
| Short Call Condor Vs Bear Call Spread | Synthetic Call Vs Bear Call Spread | |
| Short Call Condor Vs Bear Put Spread | Synthetic Call Vs Bear Put Spread | |
| Short Call Condor Vs Bull Call Spread | Synthetic Call Vs Bull Call Spread | |
| Short Call Condor Vs Bull Put Spread | Synthetic Call Vs Bull Put Spread |
Thus, with this, we wrap up our comparison of Short Call Condor Vs Synthetic Call option strategies.
If you are looking at a bearish market momentum and are open towards a limited risk with a potential of unlimited profits, then Synthetic Call options strategy is definitely a positive go for you.
Be aware of all the related aspects (like the ones listed above) and then make a choice for yourself.
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.
