Long Call Condor is a strategy that must be devised when the investor is neutral on the market direction and expects volatility to be less in the market.
A Long Call Condor strategy is formed by buying Out-of-the-Money Call Option (lower strike), buying In-the-Money Call Option (lower strike), selling Out-of-the-Money Call Option (higher middle) and selling In-the-Money Call Option (higher middle). All Call Options must have the same underlying security and expiration month.
This strategy is very similar to a Long Call Butterfly. The difference is that the sold options have different strikes. The profit pay off profile is wider than that of the Long Butterfly.
Investor view: Neutral on direction and bearish on Stock/ Index volatility.
Lower breakeven: Lowest Strike + net premium paid.
Higher breakeven: Highest Strike – net premium paid.