What is an iron condor?

An iron condor is a 4-leg options strategy: sell an OTM put, buy a further OTM put (put credit spread), sell an OTM call, and buy a further OTM call (call credit spread). You collect a net credit and profit if the stock stays between the two short strikes at expiration.

What is the max profit on an iron condor?

Max profit = net credit received. You keep the full credit if the stock expires between the short put and short call strikes.

What is the max loss on an iron condor?

Max loss = Wing Width − Net Credit. For a $5 wing width iron condor with $2 credit, max loss = $3. The loss is capped because the long options in each spread limit the downside.

How do you select iron condor strikes?

Many traders sell the 16-delta put and 16-delta call (approximately 1 standard deviation from the current price), giving ~68% theoretical probability of profit. Wider wings and higher credit percentages improve the risk/reward at the cost of more capital at risk.

When should you close an iron condor?

A common rule is to close the position when you have captured 50% of the maximum profit. Research by Tastytrade shows closing at 50% profit improves the annualized return on capital versus holding to expiry.

Iron Condor Calculator

Calculate iron condor max profit, max loss, breakeven prices, and probability of profit. Includes delta-based strike selection, profit zone analysis, IV crush benefit, and 50% profit management rule.

Current Stock Price ($)

Short Put Strike ($)

Long Put Strike ($)

Short Call Strike ($)

Long Call Strike ($)

Net Premium Received ($) ?

Max Profit (net credit)

—

Max Loss —

Lower Breakeven —

Upper Breakeven —

Profit Zone Width —

Extended More scenarios, charts & detailed breakdown ▾

Stock Price ($)

Short Put Strike ($)

Long Put Strike ($)

Short Call Strike ($)

Long Call Strike ($)

Net Credit ($)

Max Profit

—

Max Loss —

Risk/Reward Ratio —

Lower Breakeven —

Upper Breakeven —

Credit as % of Wing Width —

Professional Full parameters & maximum detail ▾

Stock Price ($)

Short Put Strike ($)

Long Put Strike ($)

Short Call Strike ($)

Long Call Strike ($)

Net Credit ($)

Days to Expiry

Volatility (%)

P&L Limits

Max Profit —

Max Loss —

Lower Breakeven —

Upper Breakeven —

Probability & Expected Value

Probability of Profit (POP) —

Expected Return (POP×Profit − (1-POP)×Loss) —

Strategy Notes

IV Crush Benefit —

Management Rule (50% target) —

How to Use This Calculator

Enter the Stock Price and all four strike prices (short put, long put, short call, long call).
Enter the Net Premium Received (total of all 4 legs).
See max profit, max loss, and both breakeven prices instantly.
Use From Deltas tab to select strikes automatically based on a target delta.
Switch to Professional for probability of profit, expected return, and IV crush analysis.

Formula

Max Profit = Net Credit

Max Loss = Wing Width − Net Credit

Lower Breakeven = Short Put − Credit, Upper Breakeven = Short Call + Credit

Example

Example: SPY $450. Sell $440P, buy $435P, sell $460C, buy $465C. Net credit = $2.50. Max profit = $2.50, Max loss = $2.50 ($5 wing − $2.50 credit). Breakevens: $437.50 and $462.50. Stock must stay between breakevens at expiry.

Frequently Asked Questions

An iron condor is a 4-leg options strategy: sell an OTM put, buy a further OTM put (put credit spread), sell an OTM call, and buy a further OTM call (call credit spread). You collect a net credit and profit if the stock stays between the two short strikes at expiration.
Max profit = net credit received. You keep the full credit if the stock expires between the short put and short call strikes.
Max loss = Wing Width − Net Credit. For a $5 wing width iron condor with $2 credit, max loss = $3. The loss is capped because the long options in each spread limit the downside.
Many traders sell the 16-delta put and 16-delta call (approximately 1 standard deviation from the current price), giving ~68% theoretical probability of profit. Wider wings and higher credit percentages improve the risk/reward at the cost of more capital at risk.
A common rule is to close the position when you have captured 50% of the maximum profit. Research by Tastytrade shows closing at 50% profit improves the annualized return on capital versus holding to expiry.

Related Calculators

Sources & References (5) ▾

Tastytrade Iron Condor Guide — Tastytrade
CBOE Options Strategies — Iron Condor — Chicago Board Options Exchange
Option Volatility and Pricing — Natenberg — McGraw-Hill Education
Iron Condor Options Strategy — Investopedia
Options Industry Council — Iron Condor — Options Industry Council