Iron Condor Calculator
An Iron Condor is a neutral, defined-risk strategy designed to collect premium from range-bound markets. It thrives when the underlying stock experiences minimal price fluctuation and high implied volatility begins to contract.
To build an Iron Condor, you sell an out-of-the-money (OTM) Put Spread and an out-of-the-money (OTM) Call Spread of the same expiration. You collect a net credit to enter, which is your maximum profit. Maximum risk is limited to the spread width minus the credit collected.
Simulates P&L if the underlying closes at any price at expiry.
Frequently Asked Questions
Why do traders use Iron Condors?
Iron Condors are popular because they have a high probability of success in non-trending markets and benefit from time decay and volatility drops.
How are the breakevens calculated?
An Iron Condor has two breakeven points: Lower Breakeven (Sell Put Strike - Net Credit) and Upper Breakeven (Sell Call Strike + Net Credit).