Iron Condor Calculator

An iron condor sells an out-of-the-money put spread and an out-of-the-money call spread at the same time, collecting premium from both while capping the risk on each side. It's a bet that the stock stays within a range through expiration, a common income strategy for range-bound or low-conviction markets.

This calculator takes the four strikes and premiums directly and shows the numbers that matter: net credit, both breakevens, max profit and loss, and the probability the trade actually stays in its profit zone.

How does this calculator work?

Enter the current price, an implied volatility assumption, days to expiration, and the risk-free rate.

Enter the put spread (the strike and premium of the put you sell, and the strike and premium of the further-out put you buy for protection) and the call spread the same way.

The calculator computes the net credit collected, both breakevens, max profit and loss, and the probability of profit under the volatility assumption you entered.

An iron condor is really two vertical spreads sold together, a put spread below and a call spread above, so the same defined-risk math applies to each wing. The trade lives and dies on implied volatility and on the probability the price stays in range, and its full payoff can be plotted alongside any other structure on the profit-and-loss diagram.

Worked example

A stock at $100: sell the $95 put for $1.50, buy the $90 put for $0.50, sell the $105 call for $1.50, buy the $110 call for $0.50, at 20% implied volatility with 30 days to expiration.

Net credit

$200

Breakevens

$93.00 and $107.00

Max profit

$200 (the credit, if price stays between breakevens)

Max loss

$300 (spread width minus credit)

Probability of profit

77.7%

How the numbers work

The $2.00 credit ($1.50 minus $0.50 on each side) is the most this trade can make, collected if the stock finishes anywhere between $93 and $107 at expiration.

If the stock finishes below $90 or above $110, both spreads are fully in the money and the loss maxes out at the $5 spread width minus the $2 credit, or $300 per contract, no matter how far the stock moves beyond those points.

At 20% implied volatility, the calculator estimates a 77.7% chance the stock stays inside the profitable range, a favorable-looking probability, though the maximum reward ($200) is smaller than the maximum risk ($300), which is typical for this structure.

Iron condors trade a high probability of a small, defined profit for a lower probability of a larger, defined loss. Selecting how far out of the money to place the short strikes is the main lever: strikes closer to the current price raise the credit but lower the probability of profit, and vice versa.