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Neutral Strategy

Iron Condor Calculator

Calculate potential profit and loss for iron condor trades. Profit from low volatility with defined risk on both sides.

NeutralLimited RiskLimited Reward

An iron condor combines a bull put spread and a bear call spread. You receive a net credit and profit when the stock stays within a range. Maximum profit occurs when the stock closes between the short strikes at expiration.

Stock Details

Current price: $100.00

Put Spread (Lower Wing)
Call Spread (Upper Wing)
Payoff at ExpirationStock Price vs Profit/Loss
Current: $100.00
Breakeven: $88.00, $112.00

Max Profit

$200.00

Max Loss

$300.00

Trade Summary
Net Credit$200.00
Max Profit$200.00
Max Loss$300.00
Breakevens$88.00, $112.00
Risk/Reward1:0.67

Credit Received

$200.00

Return on Risk

66.7%

Profit Zone

$88.00
$112.00

Understanding Iron Condors

An iron condor is a four-legged options strategy that profits from low volatility. It combines a bull put spread below the current price with a bear call spread above the current price, creating a profit zone in the middle.

When to Use Iron Condors

  • You expect the stock to trade in a range
  • You want to profit from time decay
  • You expect volatility to decrease
  • You want defined risk on both sides

Key Formulas

Maximum Profit

Max Profit = Net Credit Received

Maximum Loss

Max Loss = Wider Spread Width × 100 - Net Credit

Related Calculators

Butterfly CalculatorStrangle CalculatorCredit Spread Calculator

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