Condor Spread Calculator
Visualize and analyze Iron Condor, Call Condor, and Put Condor strategies. Calculate max profit, max loss, breakeven points, and risk/reward ratios instantly.
Strike Prices & Premiums
Strategy Structure
• Buy $85 Put @ $0.5
• Sell $95 Put @ $2
• Sell $105 Call @ $2
• Buy $115 Call @ $0.5
Payoff Diagram at Expiration
What is a Condor Spread?
A Condor Spread is a neutral options strategy that uses four options with four different strike prices, all with the same expiration date. The strategy creates a “condor” shaped payoff diagram, with limited profit potential and limited risk.
There are three main types of condor spreads:
- Iron Condor: Combines a put credit spread (bull put spread) with a call credit spread (bear call spread). Uses both puts and calls.
- Call Condor: Uses four call options at different strikes. Buy the outer strikes, sell the inner strikes.
- Put Condor: Uses four put options at different strikes. Buy the outer strikes, sell the inner strikes.
How to Use This Condor Spread Calculator
- Select Condor Type: Choose between Iron Condor, Call Condor, or Put Condor based on your strategy preference and available options.
- Choose Position: Select “Short” for a credit spread (profit from range-bound movement) or “Long” for a debit spread (profit from large price movements).
- Enter Stock Price: Input the current price of the underlying asset.
- Set Strike Prices: Enter four strike prices from lowest to highest. For a balanced condor, keep equal spacing between strikes.
- Input Premiums: Enter the premium (price) for each option leg.
- Analyze Results: Review max profit, max loss, breakeven points, and the interactive payoff diagram.
Short vs Long Condor Strategies
Short Condor (Credit Strategy)
A Short Condor is entered for a net credit and profits when the underlying asset stays between the two middle strike prices. It benefits from time decay and low volatility.
- Outlook: Neutral, expecting range-bound movement
- Max Profit: Net credit received (when price stays between middle strikes)
- Max Loss: Width of spread minus net credit
- Best For: Low volatility environments
Long Condor (Debit Strategy)
A Long Condor is entered for a net debit and profits when the underlying asset makes a significant move in either direction, beyond the breakeven points.
- Outlook: Volatile, expecting large price movement
- Max Profit: Width of spread minus net debit
- Max Loss: Net debit paid
- Best For: High volatility environments
Condor Spread Formulas
Understanding the key calculations for condor spreads:
- Net Premium: (Premium of sold options) - (Premium of bought options)
- Max Profit (Short): Net Credit × 100 × Contracts
- Max Loss (Short): (Width - Net Credit) × 100 × Contracts
- Lower Breakeven: Lower middle strike - Net Premium
- Upper Breakeven: Upper middle strike + Net Premium
Frequently Asked Questions
What is a Condor Spread?
A Condor Spread is a neutral options strategy that uses four options with four different strike prices. It profits when the underlying asset stays within a range. The Iron Condor uses both calls and puts, while a regular Condor uses only calls or only puts.
What is the difference between Iron Condor and Condor Spread?
An Iron Condor combines a put credit spread and a call credit spread using both puts and calls. A regular Condor Spread uses only one type of option (all calls or all puts) with four different strikes. Both have similar payoff profiles but different construction.
When should I use a Condor Spread?
Use a Condor Spread when you expect the underlying asset to trade within a range with low volatility. Short Condors profit from time decay when price stays between the inner strikes. Long Condors profit from large price movements outside the range.
What is the maximum profit on a Condor Spread?
For a Short Condor (credit spread), maximum profit equals the net credit received and occurs when the underlying price stays between the two middle strikes at expiration. For a Long Condor (debit spread), maximum profit is the width of the spread minus the net debit paid.
What is the maximum loss on a Condor Spread?
For a Short Condor, maximum loss is the width of the wider spread minus the net credit received. For a Long Condor, maximum loss is limited to the net debit paid. Both strategies have defined, limited risk.
Disclaimer: This Condor Spread Calculator is for educational purposes only. Options trading involves significant risk and is not suitable for all investors. The calculations do not account for commissions, taxes, assignment risk, or early exercise. Always consult with a qualified financial advisor before trading options.
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