Iron Condor Calculator

What is an Iron Condor?

An iron condor is a way to earn income when you expect a stock to stay within a range. You sell a put below the current price and a call above it. To limit your risk, you also buy a put further below and a call further above (the "wings"), all with the same expiry date.

You collect a net credit up front. If the stock finishes anywhere between the two strikes you sold, all four options expire worthless and you keep the whole credit. The wings cap your loss if the stock makes a big move either way.

How to use this calculator

1. Enter the stock's current price. Adding the ticker symbol is optional.
2. Enter the put and the call you're selling: each one's strike price and premium per share.
3. Enter the put you're buying for the lower wing: its strike price and premium per share.
4. Enter the call you're buying for the upper wing: its strike price and premium per share.
5. Set the expiry date, or type the number of days to expiry.
6. Enter how many condors you're trading and any fees per condor.

The calculator updates as you type. You'll see:
- Your net credit (your maximum profit), maximum loss and the two break-even prices.
- Your return on risk and how wide your profit zone is.
- Your chance of making a profit, of keeping the full credit, and of taking the maximum loss.
- A chart of your profit or loss at different stock prices, today, at two dates in between, and at expiry. Hover over the chart (or tap it on a phone) to read exact values.
- A table of profit or loss by stock price and date, shown in dollars or as a percentage of your maximum loss.

You can find the premiums in your broker's option chain. Use the mid-price between the bid and the ask for a realistic figure. Under "Manual settings" you can enter one implied volatility for all four options, change the interest rate, or set the price range shown in the chart and table.

When is an Iron Condor a good choice?

- You expect the stock to move sideways and stay within a range until expiry.
- Implied volatility is higher than usual. Premiums are richer, so you collect a bigger credit, and you benefit if IV falls.
- You want a defined, limited risk. You know your worst case before you place the trade.
- You want a wider profit zone than an iron butterfly, and accept a smaller credit in return.
- Many traders place the sold strikes around or outside the expected move. You can check this with our Expected Move calculator.

When might it not suit?

- You expect a big move in either direction, or there's a major event before expiry, such as an earnings report.
- The stock is trending strongly up or down.
- The credit is very small compared with the maximum loss. Check the return on risk and the chance of profit together.

Things to keep in mind

- Between the two sold strikes at expiry, you keep the full credit.
- Beyond either wing at expiry, you take your maximum loss. Usually only one side can lose, as the stock can't finish beyond both.
- Many traders close the condor early once they've captured 50% or so of the credit, rather than waiting for expiry.
- The options you sell can be assigned early, especially if they're deep in the money or near an ex-dividend date. Your wings still protect you, but it's worth knowing.

This calculator gives estimates for educational purposes only. It isn't financial advice. Option prices before expiry are modelled, and real prices will differ.