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    CALCULATORiQ™

    Iron Condor Calculator

    Four Legs

    Risk Profile

    Max Profit (credit kept)

    $160.00

    47.1% return on risk

    Max Loss:$340.00
    Lower Breakeven:$93.40
    Upper Breakeven:$111.60
    Profit Zone Width:$18.20
    Reward : Risk:0.47 : 1
    Widest Spread:$5.00

    How iron condor math works

    An iron condor sells a put spread and a call spread on the same expiration. The credit received is the maximum profit, kept when the stock finishes between the two short strikes. Maximum loss is the wider spread width minus the credit, multiplied by 100 per contract.

    Breakevens sit one credit outside each short strike. Between those two prices the position is profitable at expiration, which is why the profit zone width matters more than the raw credit when comparing candidates.

    Related tools: Options profit calculator, Covered call calculator, Put option calculator.

    Frequently asked questions

    How does an iron condor make money?

    You sell an out-of-the-money put spread and an out-of-the-money call spread. If the stock finishes between the two short strikes at expiration, all four legs expire worthless and you keep the net credit.

    What is the maximum loss on an iron condor?

    The width of the wider spread minus the net credit received, multiplied by 100. It is reached when the stock closes beyond either long strike.

    What are the breakeven points?

    The short put strike minus the net credit on the downside, and the short call strike plus the net credit on the upside. Between those two prices the trade is profitable.

    When is an iron condor the wrong trade?

    Before earnings, major macro releases, or in a strongly trending market. The strategy needs the underlying to stay range-bound through expiration.

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