Short Call Condor
Description
The mirror image of the long call condor: selling the wings and buying the body, profiting when the underlying finishes outside the middle range.
Setup
- Sell one call at the lowest strike.
- Buy one call at each of the next two strikes up.
- Sell one call at the highest strike.
Context
Used when a move away from the current range is expected but the exact destination is uncertain, while keeping the cost of entry small.
Risk Profile
Maximum gain is the small net credit received, at either extreme. Maximum loss is the width between adjacent strikes minus that credit, anywhere between the two middle strikes.
Pros
- Collects a credit up front.
- Defined, capped maximum loss.
- Wider profit zone than a short butterfly on either side.
Cons
- Maximum gain is small relative to the width of the structure.
- Loses the most if the underlying pins inside the middle range.
Effect of Time
Time decay generally hurts the position as expiry nears, if the underlying sits within the middle range.
Effect of Volatility
A rise in implied volatility tends to help the position, since it makes a move outside the range more likely.
Look-Alike Strategies
Live Structure
| Position | Right | Ratio | Strike | Expiry | Premium | Fill Price | Est. Fee |
|---|---|---|---|---|---|---|---|
| Short | Call | 1 | $83500.0000 | 24 Sep 2026 | $949.6751 | $801.9478 | $25.3247 |
| Long | Call | 1 | $84000.0000 | 24 Sep 2026 | $527.5973 | $590.9089 | $25.3247 |
| Long | Call | 1 | $85000.0000 | 24 Sep 2026 | $71.7532 | $84.4156 | $8.9692 |
| Short | Call | 1 | $85500.0000 | 24 Sep 2026 | $29.5454 | $16.8831 | $3.6932 |
Estimated Cost to Assemble
An estimate of what entering this structure right now would really cost: filling every leg by crossing the spread (the ask when buying, the bid when selling) instead of at the mid-price, plus an estimated exchange fee. Real fees and fills can differ from this estimate.
Payoff & Greeks vs. Underlying Price
The Greeks curves are a Black-Scholes model using each leg's current implied volatility, holding time to expiry fixed -- not live exchange data at every price, which only exists at the current price (dashed line).
Payoff at Expiration
This structure's value and profit/loss at expiration, at a handful of specific prices: every leg's strike, every breakeven, the current spot, and the chart's own range.
| Underlying Price | Value at Expiration | Profit / Loss | Return on Cost |
|---|---|---|---|
| $81500.0000 | $0.0000 | $379.8700 | +100.0% |
| $83500.0000 | $0.0000 | $379.8700 | +100.0% |
| $83879.8700 breakeven | -$379.8700 | $0.0000 | +0.0% |
| $84000.0000 | -$500.0000 | -$120.1300 | -31.6% |
| $84415.5600 current | -$500.0000 | -$120.1300 | -31.6% |
| $85000.0000 | -$500.0000 | -$120.1300 | -31.6% |
| $85120.1300 breakeven | -$379.8700 | $0.0000 | +0.0% |
| $85500.0000 | $0.0000 | $379.8700 | +100.0% |
| $87500.0000 | $0.0000 | $379.8700 | +100.0% |