Iron Condor
Computes the outcome of an iron condor: selling a put spread and a call spread at the same time, collecting a net credit. It's the classic strategy for betting the asset will trade sideways while pocketing the premium with limited risk. The tool uses the credit received and the four strikes to return the maximum profit (the credit itself), the maximum loss and the two breakeven points. Enter the four strikes and the net credit received.
Resultado
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Iron Condor
Computes the outcome of an iron condor: selling a put spread and a call spread at the same time, collecting a net credit. It's the classic strategy for betting the asset will trade sideways while pocketing the premium with limited risk. The tool uses the credit received and the four strikes to return the maximum profit (the credit itself), the maximum loss and the two breakeven points. Enter the four strikes and the net credit received.
Collecting premium by betting on boredom
The iron condor is probably the favorite strategy of those who sell options for income. The thesis is simple: the asset goes nowhere. You sell a put spread below the price and a call spread above, pocket the credit from both and hope everything expires worthless, keeping the cash.
The beauty is the limited risk on both ends, guaranteed by the further-out bought options, which act as insurance. The maximum profit is the credit received; the maximum loss is the wing width minus that credit. Between the two sold strikes there's a comfort zone where the position earns the full value. It's income with well-defined ceiling and floor.
Enter the four strikes and the net credit you received to set up the position. The tool computes the maximum profit, the maximum loss and the two breakeven points. Remember: the probability of success is high, but the loss when the asset escapes the band is usually much bigger than the credit earned, so management matters.
Related Tools
Iron Butterfly
Computes the outcome of an iron butterfly: selling a call and a put at the same central strike (the body) and buying a further-out call and put (the wings), collecting a net credit. It's a strong bet that the asset will finish right at the central strike, with a bigger credit than an iron condor but a narrower profit range. The tool returns the maximum profit, the maximum loss and the two breakeven points. Enter the central strike, the wing width and the credit received.
Bull Put Spread
Computes the outcome of a bull put spread: selling a higher-strike put and buying a lower-strike put, collecting a credit. It's a bullish (or neutral) bet that pockets the premium with risk capped by the bought put. The tool returns the credit received (maximum profit), the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
Long Call Condor
Computes the outcome of a long call condor: buy one low-strike call, sell two middle-strike calls and buy one high-strike call. It's a cousin of the butterfly with a wider profit zone: you bet the asset will stay within a range rather than land exactly on a point. The tool returns the net cost, the maximum profit, the maximum loss and the two breakeven points. Enter the four strikes and the four call premiums.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.