Iron Condor Calculator
Net credit, both break-evens, max profit, and max loss from the four strikes of an iron condor or iron butterfly.
Two credit spreads, one either side. Profits while the stock stays between the short strikes.
Figures are per position at expiration and include the 1 contract entered, at 100 shares each. They exclude commissions, assignment fees, and any early-assignment or dividend risk on short legs. Values before expiration differ, because time value and implied volatility still carry weight.
An iron condor sells a put spread below the stock and a call spread above it, at the same expiration. You collect two credits and keep both if the stock finishes between the short strikes. The two long options are wings: they cost part of the credit and, in exchange, cap what either side can cost you.
Worked example. Buy the 90 put for $0.50, sell the 95 put for $1.50, sell the 110 call for $1.40, and buy the 115 call for $0.45. The net credit is $195 for one contract, and that is the most you can make. You keep it all anywhere between $95 and $110. The break-evens are $93.05 and $111.95, so the stock can drift meaningfully before the trade turns. Beyond either wing the loss is capped at $305, the $5 width of one spread less the credit collected.
Frequently asked questions
When does an iron condor make money?
At expiration, anywhere between the two short strikes, where all four options expire worthless and you keep the entire credit. Between a short strike and its break-even you still keep part of it. The position also gains from time passing and from implied volatility falling, both of which reduce what it would cost to close.
What is the max loss on an iron condor?
The width of one spread minus the net credit received. Only one side can finish in the money, so you cannot lose on both wings at once. In the example above, a $5-wide spread opened for a $1.95 credit risks $305.
How far out should the short strikes be?
Wider strikes raise the probability of keeping the credit but shrink the credit itself, and the two move against each other roughly in proportion. Delta is the usual shorthand: selling the 0.16 delta strikes puts each short leg around one standard deviation out, which is a common starting point rather than a rule.
What is the difference between an iron condor and an iron butterfly?
Position of the short strikes. A condor separates them, giving a wide profit zone and a smaller credit. A butterfly stacks them at the same strike, which maximises the credit but means the stock has to finish very close to that strike. Switch between them with the toggle above.
What is the biggest risk people underestimate?
Assignment on a short leg before expiration, and gap risk. The defined maximum assumes you hold to expiration; a stock that gaps through a short strike overnight can put you at or near max loss with no chance to adjust. The wings cap the damage but do not prevent it.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.