Iron Condor Calculator
Work out the max profit, max loss, break-evens and return-on-risk of an iron condor from your credit and wing width.
How it works
Max profit = credit × 100 × contracts · Max loss = (width − credit) × 100 × contracts · Break-evens = short put − credit and short call + credit
An iron condor sells an out-of-the-money put spread and call spread at once, collecting two credits. It profits when the underlying stays between the short strikes through expiry, keeping the full credit. Losses are capped by the long wings and peak when the underlying pushes past either long strike. Because the risk (width minus credit) usually dwarfs the credit, the strategy wins often but with a small reward relative to the maximum loss.
Worked example
Collect $2 on 5-wide wings, short put at $95, short call at $105. Max profit = $2 × 100 = $200. Max loss = (5 − 2) × 100 = $300. Break-evens = 95 − 2 = $93 and 105 + 2 = $107.
Frequently asked questions
Why must the credit be less than the width?
The wing width is the maximum a spread can be worth. If you could collect a credit equal to or larger than the width there would be no risk, which never happens in a real market. A credit at least below the width is what leaves room for loss.
What is return on risk?
It is the max profit divided by the max loss (capital at risk). A $200 profit against $300 of risk is about a 67% return on risk if the condor expires fully inside the short strikes.
When does the condor lose the most?
When the underlying finishes at or beyond either long strike, the losing spread reaches its full width and the credit only partly offsets it, producing the capped maximum loss.
Related calculators
Educational estimate, not investment advice. Options and leveraged positions carry substantial risk.