Iron Condor calculator

An iron condor is a neutral, four-leg options trade: you sell a put and a call closer to the money, then buy a further-out put and call to cap the risk on each side. You collect a net credit and profit if the stock stays between the two short strikes through expiry.

Max profit equals the net credit you collected per share. Max loss equals the wing width (strike difference between the long and short on either side) minus the net credit. Both apply per share — multiply by 100 to get the per-contract dollar amount.

Lower break-even is the short put strike minus the net credit. Upper break-even is the short call strike plus the net credit. The stock can sit anywhere between those two prices at expiry and you finish profitable.

An iron condor starts losing money when the stock closes outside either short strike at expiry, and reaches max loss when it closes at or beyond either long strike. Sharp moves in either direction are the failure mode — that's why the strategy is best on quiet, range-bound names.

On 30-45 day trades with reasonably wide wings, return on risk in the 15-35% range is typical. Higher numbers usually come with tighter strikes and a smaller profit zone. The calculator's return-on-risk figure helps you compare setups on the same scale.