Iron Condor Profit Calculator

 A long iron condor strategy has four legs and consists in selling one OTM put, buying one OTM put with a higher strike price, buying one ITM call and selling one ITM call with a higher strike price. This strategy is suitable when you expect a big move up or down, beyond the lowest and highest strike prices of your options. On the contrary, a short iron condor would be suitable if you expect low volatility and a stable price. An iron condor is similar to a strangle, except that both upside and downside are limited.

This calculator displays the payoff of your strategy at maturity depending on the underlying asset price. It also gives you tools to estimate the profit and loss (P&L) of your strategy before maturity by giving you control over price, time and volatility variables (i.e. it lets you see how your options' price varies alongside a price and/or time/volatility changes).

Step 1: select your option strategy type ('Long Iron Condor', or 'Short Iron Condor')
Step 2: enter the underlying asset price and risk free rate
Step 3: enter the maturity in days of the strategy (i.e. all options have to expire at the same date)
Step 4: enter the option price and quantity for each leg (quantity is expected to be the same for each leg)
Step 5: click "Calculate"
Step 6 (optional): you can modify the spot price, number of days before expiry or implied volatility through the controls below the chart to simulate the P&L of your strategy and see how it fares under new market conditions (note that this is theoretical though).

 

Put 1 Implied Vol. (%): Put 2 Implied Vol. (%): Call 1 Implied Vol. (%): Call 2 Implied Vol. (%):
Spot Price Maturity (Days) Option 1 Imp. Vol. Option 2 Imp. Vol. Option 3 Imp. Vol. Option 4 Imp. Vol. New Option 1 Price: New Option 2 Price: New Option 3 Price: New Option 4 Price:












Disclaimer: the contents of this website are for informational purposes only and do not constitute any investment recommendation. The visitor acts at his own risk.