Options - Condors

Flightglobal  Aug 25  Comment 
Ameco Beijing completed cabin modification work on a Boeing 767-300ER in July for German leisure carrier Condor.
Benzinga  Jul 23  Comment 
Iron condors are advanced options trades designed as an income strategy. The objective is straightforward once you determine your desired strike price. But finding those strikes take a bit of finesse. You could close your eyes and throw a dart....
SeekingAlpha  Jul 21  Comment 
OilVoice  Jul 16  Comment 
Condor Petroleum Inc. TSXCPI is pleased to announce that drilling operations have commenced on the KN501 Primary Basin well on the Companys 100 owned Zharkamys West 1 Territory in Kazakhstan. T
Motley Fool  Jun 10  Comment 
Options strategies can let you profit even when stocks are flat.
OilVoice  Mar 16  Comment 
Condor Petroleum Inc. TSXCPI is pleased to provide an update on operational activities on the Zharkamys West 1 Territory in Kazakhstan. Shoba Trial Production Production at Shoba has been tempora
Mondo Visione  Dec 20  Comment 
Benjamin M. Lawsky, Superintendent of Financial Services, today submitted for the Court’s approval a Final Consent Judgment to settle the Department’s lawsuit against Condor Capital Corporation (Lawsky v. Condor), a subprime auto lender based...
The Australian  Aug 15  Comment 
FRACKING in Australia is a capital and power intensive business, dominated by two Houston oil services majors.


A Condor is an options trading strategy that involves trading four options at different strike prices. A condor is a neutral options strategy because it limits gains and losses in both market directions. The name of this strategy comes from the shape of its profit/loss graph, which resembles (slightly) a large bird. Traders often refer to the inner two options as the "body" of the condor and the outer two options as the "wings".

A Condor spread is created using the same type of options (calls or puts) for all four strike prices. An Iron Condor spread is created using both puts and calls. The Iron Condor is the more common of the two strategies as, for the same payoff, it can be created as a credit spread thus not requiring a trader to expend capital to execute the trade.

Long Condor

A Long Condor is constructed by combining a Bull Put Spread and a Bear Call Spread. Stated another way, a Long Condor consists of a short Strangle with a long Strangle placed a bit wider to limit potential loss (and, more importantly to options traders, limit margin requirements). In constructing a condor position a trader would buy (long) options on the outer strike prices (the wings). These two options will be an out-of-the-money put at the higher strike price and an out-of-the-money call at the lower strike price. They will then sell options at the inner strike prices, (the body) again using one call and one put option with the put at the higher of the two inner strike prices. If the put and call options of the body are sold at the same strike price, the trade is considered an Iron Butterfly, because the payoff graph resembles that of a Butterfly spread.


A trader who uses a long condor is speculating that the price of the underlying asset at expiration will be between the inner two strike prices where the strategy pays out the most. As such, this strategy is said to be neutral because it is not a bet on a specific directional move in the market. Below is a payoff chart for a long condor position.

Short Condor

A Short Condor is constructed similarly to a long condor, but rather than buying the options on the wings and selling those on the body, a trader would go long on the inner options and short on the outer.


In this strategy the trader is betting that the price of the underlying asset at expiration will be either greater than the highest strike price or lower than the lowest strike price. These price ranges are the areas where this strategy provides maximum profits, as seen in the chart below.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki