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 Straddle 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 Straddle 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 Straddle Vs Long Call Condor comparison:
| Comparison Aspect | Short Straddle | Long Call Condor |
| View |  |  |
| Strategy Introduction | Using the short straddle strategy, the investor makes an upfront gain through the premiums collected by writing the call and put options. The investor expects that there...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 investor must hold strong views of the steadiness in the market to be involved in the short straddle. | 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 | Experts | Intermediates |
| Options Traded | Call, Put | Call |
| Number of Positions | 2 | 4 |
| Action Needed | 1 ATM Call, 1 ATM Put | 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 | Lower Breakeven = Strike Price of Put - Net Premium Upper breakeven = Strike Price of Call+ 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 | No Market Movement | Little or no movement in the price of the underlying asset |
| Strategy Summary | Complex | Straight-Forward |
| Advantages | Profits in Zero Market Volatility Situation | 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 | 2 | 1 |
| Also called as | NA | NA |
| More Comparisons | Short Straddle Vs Short Put | Long Call Condor Vs Short Put |
| Short Straddle Vs Long Combo | Long Call Condor Vs Long Combo | |
| Short Straddle Vs Synthetic Call | Long Call Condor Vs Synthetic Call | |
| Short Straddle Vs Long Put | Long Call Condor Vs Long Put | |
| Short Straddle Vs Long Call | Long Call Condor Vs Long Call | |
| Short Straddle Vs Covered Call | Long Call Condor Vs Covered Call | |
| Short Straddle Vs Covered Put | Long Call Condor Vs Covered Put | |
| Short Straddle Vs Protective Call | Long Call Condor Vs Protective Call | |
| Short Straddle Vs Short Box | Long Call Condor Vs Short Box | |
| Short Straddle Vs Long Call Condor | Long Call Condor Vs Short Call | |
| Short Straddle Vs Short Call Condor | Long Call Condor Vs Short Call Condor | |
| Short Straddle Vs Box Spread | Long Call Condor Vs Box Spread | |
| Short Straddle Vs Short Strangle | Long Call Condor Vs Short Strangle | |
| Short Straddle Vs Long Strangle | Long Call Condor Vs Long Strangle | |
| Short Straddle Vs Collar Strategy | Long Call Condor Vs Collar Strategy | |
| Short Straddle Vs Long Straddle | Long Call Condor Vs Long Straddle | |
| Short Straddle Vs Short Call | Long Call Condor Vs Short Straddle | |
| Short Straddle Vs Long Call Butterfly | Long Call Condor Vs Long Call Butterfly | |
| Short Straddle Vs Short Call Butterfly | Long Call Condor Vs Short Call Butterfly | |
| Short Straddle Vs Bear Call Spread | Long Call Condor Vs Bear Call Spread | |
| Short Straddle Vs Bear Put Spread | Long Call Condor Vs Bear Put Spread | |
| Short Straddle Vs Bull Put Spread | Long Call Condor Vs Bull Call Spread | |
| Short Straddle Vs Bull Put Spread | Long Call Condor Vs Bull Put Spread |
Thus, with this, we wrap up our comparison on Short Straddle Vs Long Call Condor option strategies.
At the same time, if you are an experienced trader and are in a neutral market situation, then Short Straddle is one of the options you can look out for.
There is a high amount of risk involved as well – thus, you have to be very sure of the point that the market has no volatility. Otherwise, stakes can be very high.
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 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.
