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 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 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 Vs Long Call Condor comparison:
| Comparison Aspect | Short Call | Long Call Condor |
| View |  |  |
| Strategy Introduction | Short Call is used when the trader expects that the price of the underlying asset will go down sharply, he shorts a call. If the price of the asset goes down, the strategy generates profit. However, if the price...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 | The trader has the obligation to buy the stock at the predetermined price at the time of expiration. | 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 | Experts | Intermediates |
| Options Traded | Call | Call |
| Number of Positions | 1 | 4 |
| Action Needed | Sell Call Option | 1 Long ITM Call, 1 Short ITM Call, 1 Short OTM Call, 1 Long OTM Call |
| Risk for You | Unlimited | Limited |
| Profit Potential | Limited | Limited |
| Break Even Point for Investor | Strike Price PLUS 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 | Prices of Assets Go Down Sharply | Little or no movement in the price of the underlying asset |
| Strategy Summary | Risky | Straight-Forward |
| Advantages | Profits in Bearish Market | Profits in Low Volatilty, Limited Risk |
| Disadvantages | Limited Profit, Unlimited Risk | High Premium, Selection of Correct Strike Prices is Paramount. |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 1 | 1 |
| Also called as | Naked Call, Uncovered Call | NA |
| More Comparisons | Short Call Vs Short Put | Long Call Condor Vs Short Put |
| Short Call Vs Long Combo | Long Call Condor Vs Long Combo | |
| Short Call Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Short Call Vs Long Put | Long Call Condor Vs Long Put | |
| Short Call Vs Long Call | Long Call Condor Vs Long Call | |
| Short Call Vs Covered Call | Long Call Condor Vs Covered Call | |
| Short Call Vs Covered Put | Long Call Condor Vs Covered Put | |
| Short Call Vs Protective Call | Long Call Condor Vs Protective Call | |
| Short Call Vs Short Box | Long Call Condor Vs Short Box | |
| Short Call Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Short Call Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Short Call Vs Box Spread | Long Call Condor Vs Box Spread | |
| Short Call Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Short Call Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Short Call Vs Collar Strategy | Long Call Condor Vs Collar Strategy | |
| Short Call Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Short Call Vs Short Straddle | Long Call Condor Vs Short Straddle | |
| Short Call Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Short Call Vs Short Call Butterfly | Long Call Condor Vs Short Call Butterfly | |
| Short Call Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Short Call Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Short Call Vs Bull Call Spread | Long Call Condor Vs Bull Call Spread | |
| Short Call Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Call Vs Long Call Condor option strategies.
As mentioned above, if you are looking to put minimal initial investment and have a high-risk appetite, then Short Call options strategy can work wonders for you.
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.
Furthermore, as said above, it also depends on the market situation.
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