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 Put 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 Put 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 Put Vs Long Call Condor comparison:
| Comparison Aspect | Short Put | Long Call Condor |
| View |  |  |
| Strategy Introduction | The short put strategy is used when the investor is bullish towards the market and expects the prices to go up. He then sells the put option and makes a profit if...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 | Investor is obligated to sell the shares at the predetermined price, at the time of expiry, if the buyer of the put option chooses to exercise his option. | The trader has the obligation to choose the Strike Prices optimally in order to see decent profits. |
| Market Position | Bullish | Neutral |
| Strategy Level Suitable for | Beginners | Intermediates |
| Options Traded | Put | Call |
| Number of Positions | 1 | 4 |
| Action Needed | Sell Put 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 MINUS 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 go up sharply | Little or no movement in the price of the underlying asset |
| Strategy Summary | Complex & Risky | Straight-Forward |
| Advantages | Steady source of income till market remains bullish | Profits in Low Volatilty, Limited Risk |
| Disadvantages | High Risk, Limited Profit | High Premium, Selection of Correct Strike Prices is Paramount. |
| Market Scenarios - Profit | 1 | 1 |
| Market Scenarios - Loss | 2 | 1 |
| Also called as | Naked Put or Uncovered Put | NA |
| More Comparisons | Short Put Vs Long Put | Long Call Condor Vs Short Put |
| Short Put Vs Long Combo | Long Call Condor Vs Long Combo | |
| Short Put Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Short Put Vs Short Call | Long Call Condor Vs Long Put | |
| Short Put Vs Long Call | Long Call Condor Vs Long Call | |
| Short Put Vs Covered Call | Long Call Condor Vs Covered Call | |
| Short Put Vs Covered Put | Long Call Condor Vs Covered Put | |
| Short Put Vs Protective Call | Long Call Condor Vs Protective Call | |
| Short Put Vs Short Box | Long Call Condor Vs Short Box | |
| Short Put Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Short Put Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Short Put Vs Box Spread | Long Call Condor Vs Box Spread | |
| Short Put Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Short Put Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Short Put Vs Collar Strategy | Long Call Condor Vs Collar Strategy | |
| Short Put Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Short Put Vs Short Straddle | Long Call Condor Vs Short Straddle | |
| Short Put Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Short Put Vs Short Call Butterfly | Long Call Condor Vs Short Call Butterfly | |
| Short Put Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Short Put Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Short Put Vs Bull Call Spread | Long Call Condor Vs Bull Call Spread | |
| Short Put Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Put 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.
However, if your risk appetite is relatively high – then you can try Short Put although the profit potential in that strategy is limited.
Furthermore, as said 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.
