Iron Condor Inputs
Example Data Table
| Scenario | Underlying | Long Put | Short Put | Short Call | Long Call | Net Credit | Contracts | Estimated Max Profit | Estimated Max Loss |
|---|---|---|---|---|---|---|---|---|---|
| Balanced Range Setup | $100.00 | 90 | 95 | 105 | 110 | $1.80 | 2 | $354.80 | $646.50 |
| Narrower Credit Setup | $52.00 | 46 | 48 | 56 | 58 | $0.70 | 3 | $200.40 | $394.80 |
| Unbalanced Wing Setup | $210.00 | 195 | 200 | 220 | 228 | $2.10 | 1 | $207.40 | $592.60 |
Example results assume standard equity option multipliers and include four-leg commission estimates.
Formula Used
1) Gross credit received
Gross Credit = Net Credit × 100 × Contracts
2) Maximum profit
Maximum Profit = Gross Credit − Total Commissions
3) Put-side width
Put Width = Short Put Strike − Long Put Strike
4) Call-side width
Call Width = Long Call Strike − Short Call Strike
5) Put-side maximum loss
Put-side Max Loss = max(0, Put Width − Net Credit) × 100 × Contracts + Total Commissions
6) Call-side maximum loss
Call-side Max Loss = max(0, Call Width − Net Credit) × 100 × Contracts + Total Commissions
7) Overall maximum loss
Maximum Loss = larger of Put-side Max Loss and Call-side Max Loss
8) Break-even prices
Lower Break-even = Short Put Strike − Net Credit
Upper Break-even = Short Call Strike + Net Credit
9) Expiration profit/loss at a selected price
P/L = [Net Credit − short put intrinsic + long put intrinsic − short call intrinsic + long call intrinsic] × 100 × Contracts − Total Commissions
How to Use This Calculator
- Enter the current underlying price.
- Enter all four strikes in correct order: long put, short put, short call, long call.
- Add the net credit per share collected for the complete iron condor.
- Enter contracts, estimated commission, and days to expiration.
- Set the chart range and step size for the payoff graph.
- Press Calculate Iron Condor to show results above the form.
- Review break-even prices, maximum profit, maximum loss, and return on risk.
- Use the CSV and PDF buttons to save the result summary.
Frequently Asked Questions
1) What is an iron condor?
An iron condor is a defined-risk options strategy built from a bull put spread and a bear call spread. It usually profits when the underlying stays between the short strikes through expiration.
2) How does this calculator define maximum profit?
Maximum profit equals the total credit received minus estimated commissions. That outcome occurs when the underlying finishes between the short put and short call at expiration.
3) Why are there two possible maximum-loss values?
An iron condor has a put-side spread and a call-side spread. If the wing widths differ, each side can carry different risk. The calculator shows both and uses the larger value as overall maximum loss.
4) What are the break-even prices?
The lower break-even is the short put strike minus net credit. The upper break-even is the short call strike plus net credit. Prices between those levels produce a profit at expiration.
5) Does this include implied volatility changes?
No. This page focuses on expiration payoff and summary metrics. It does not simulate changing implied volatility, Greeks, slippage, assignment risk, or changing interest rates before expiration.
6) Why is commission entered per contract?
Many brokers charge fees per contract, per leg. Since an iron condor uses four legs, this calculator multiplies the commission by four and then by the number of contracts.
7) What does annualized return on risk mean here?
It is a simple estimate based on maximum profit, maximum loss, and days to expiration. It helps compare setups, but it is not a guaranteed performance measure.
8) Can I use this for unbalanced iron condors?
Yes. The calculator accepts different put and call wing widths. It labels the structure as balanced or unbalanced and adjusts the side-specific loss calculations accordingly.