Iron Condor Calculator

What Is an Iron Condor?

An iron condor combines an out-of-the-money put spread and an OTM call spread on the same underlying with the same expiration. It's a neutral strategy—the short iron condor (more common) collects a credit and profits when the stock stays in a range, while the long iron condor pays a debit and profits from big moves in either direction.

Short Iron Condor (Credit)

A short iron condor is built by selling an OTM put and buying a further OTM put below the stock price (a bull put spread), then selling an OTM call and buying a further OTM call above the stock price (a bear call spread). You collect a net credit and profit when the stock stays between the short strikes through expiration.

Key Characteristics

• Max Profit: Limited to the net credit you receive to enter the trade. Achieved when the stock closes between the short strikes at expiration.
• Max Loss: (Wider spread width − net credit) × 100 × number of contracts. Occurs when the stock closes at or beyond either of the long strikes at expiration.
• Upper Breakeven: Short call strike + net credit
• Lower Breakeven: Short put strike − net credit
• Outlook: Neutral—expecting range-bound movement

How to Read the P/L Chart

The cyan line (T+0) shows your theoretical P/L at trade entry. Before expiration, the curve is smoother because all four options still have time value. When the stock is between the short strikes, time decay works in your favor.

T+0 means "today plus 0 days," while T+30 would mean "today plus 30 days." It's a common convention for payoff diagrams that show multiple points in time.

The white line (Expiration) shows your profit or loss at expiration. If the stock finishes between the short strikes, all four options expire worthless, and you keep the full credit. Between a short strike and its corresponding long strike, you'll have a partial profit or loss. Beyond the long strikes, your loss is capped. This payoff graph highlights the iron condor's defined risk on both sides and profit range in the middle.

Using This Calculator

1. Stock Price: The price of the stock at trade entry
2. Long Put Strike: The lowest strike, where you buy a put
3. Short Put Strike: The lower-middle strike, where you sell a put
4. Short Call Strike: The upper-middle strike, where you sell a call
5. Long Call Strike: The highest strike, where you buy a call
6. Net Credit: The premium you receive to enter the iron condor. To find your total potential profit, multiply the net credit by 100 and by the number of iron condors. For example, a $2.00 net credit with 3 iron condors sold is $2.00 × 100 × 3 = $600 max profit.
7. Days to Expiration: How much time is left until all options expire
8. Implied Volatility: The market's expectation of future stock price movements, as implied by the stock's option prices

Long Iron Condor (Debit)

A long iron condor is the inverse—you buy an OTM call spread (a bull call spread) and an OTM put spread (a bear put spread), paying a net debit. You profit when the stock makes a big move in either direction.

Key Characteristics

• Max Profit: (Spread width − net debit) × 100 × number of contracts. Achieved when the stock closes at or beyond either short strike at expiration.
• Max Loss: Limited to the net debit you pay to enter the trade. Occurs when the stock closes between the long strikes at expiration.
• Upper Breakeven: Long call strike + net debit
• Lower Breakeven: Long put strike − net debit
• Outlook: Expecting a large move, direction uncertain

Short Iron Condor vs. Short Iron Butterfly

Both are neutral strategies that profit from range-bound stocks. A short iron butterfly has the short put and short call at the same strike (ATM), creating a narrower profit zone but collecting more credit. A short iron condor separates the short strikes for a wider profit zone but smaller credit. If you expect the stock to pin near a specific price, the iron butterfly offers better risk/reward. If you want a wider margin for error, the iron condor is more forgiving.

A Note on Early Assignment

Any short option can be assigned early, usually when it is deep ITM near expiration or when an ITM short call approaches an ex-dividend date. If the short put is assigned, you buy 100 shares. If the short call is assigned, you sell (short) 100 shares. Either way, the spread structure protects you—your long options still cap your risk.

Note that assignment through expiration is different. If only a short option expires ITM at expiration, you'll end up with long stock if the short put is assigned, and short stock if the short call is assigned. After expiration, you'll no longer have the protection of the long options, leaving you exposed to a stock position. It's recommended to close before expiration if either short option is ITM or close to it.

Learn More About Iron Condors

For a deeper dive into iron condor mechanics, examples, and management techniques, read our comprehensive Iron Condor Options Strategy Guide.

Related Calculators

• Strangle Calculator — Different strike OTM call and put positions
• Iron Butterfly Calculator — Narrower profit zone, ATM short strikes
• Vertical Spread Calculators — Bull and bear spreads