Calculator Inputs
Enter strikes in ascending order and premiums on a per share basis.
Example Data Table
| Item | Example Value |
|---|---|
| Long Put Strike | 90 |
| Short Put Strike | 95 |
| Short Call Strike | 105 |
| Long Call Strike | 110 |
| Long Put Premium | 0.80 |
| Short Put Premium | 2.10 |
| Short Call Premium | 2.05 |
| Long Call Premium | 0.75 |
| Contracts | 1 |
| Contract Multiplier | 100 |
| Commission per Contract | 1.00 |
| Net Credit per Share | 2.60 |
| Lower Break Even | 92.40 |
| Upper Break Even | 107.60 |
| Maximum Profit Before Commissions | 260.00 |
| Maximum Loss Before Commissions | 240.00 |
Formula Used
Net Credit per Share = Short Put Premium + Short Call Premium − Long Put Premium − Long Call Premium
Put Spread Width = Short Put Strike − Long Put Strike
Call Spread Width = Long Call Strike − Short Call Strike
Maximum Profit = (Net Credit × Contract Multiplier × Contracts) − Total Commissions
Maximum Loss = ((Widest Wing Width − Net Credit) × Contract Multiplier × Contracts) + Total Commissions
Lower Break Even = Short Put Strike − Net Credit
Upper Break Even = Short Call Strike + Net Credit
Profit or Loss at Expiry is calculated from all four option legs, then adjusted by multiplier, contracts, and commissions.
How to Use This Calculator
- Enter the four strikes in correct ascending order.
- Input each option premium on a per share basis.
- Add the number of contracts and contract multiplier.
- Include estimated commission per contract for realistic results.
- Type the underlying price you want to test at expiration.
- Set a graph range and step for the payoff chart.
- Press Calculate Profit to view metrics above the form.
- Use the CSV or PDF buttons to export the results.
Frequently Asked Questions
1. What is an iron condor?
An iron condor combines a bull put spread and a bear call spread. It usually seeks income when the underlying stays between the two short strikes until expiration.
2. When does maximum profit occur?
Maximum profit happens when the expiration price remains between the short put strike and short call strike. In that zone, all options expire worthless and the trader keeps the net credit.
3. How is maximum loss determined?
Maximum loss equals the widest spread width minus the net credit, then scaled by contracts and multiplier. Commissions can increase the real loss slightly.
4. Why are there two break even points?
The position can lose money on either downside or upside movement. One break even sits below the short put. The other sits above the short call.
5. Can this calculator handle broken wing iron condors?
Yes. It uses the wider wing to estimate the worst case loss. That makes it suitable for uneven put and call spread widths.
6. Are premiums entered per share or per contract?
Enter premiums on a per share basis. The calculator multiplies by the contract multiplier, which is usually 100 for many standard equity options.
7. Does the chart show expiration payoff only?
Yes. The payoff graph models value at expiration, not before expiration. It does not include volatility changes, time decay path, or early assignment effects.
8. Why include commissions?
Commissions reduce net credit and real profit. Including them makes comparisons more practical, especially when trading several contracts or using smaller credits.