Strategy Overview
Medium RiskExpertNeutral
A long condor uses four legs of the same option type. Buy the outer strikes and sell the inner strikes for a debit. It profits when the stock stays between the inner strikes.
Max Profit
Width of inner spread - debit paid
Max Loss
Net debit paid
Breakeven
Inner strikes +/- max profit
Probability
~40% win rate
hist. est.
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Example Setup Calculator
$
Debit Paid
$200
Max Profit
$300
Max Loss
$200
Breakeven
$102.00
Strategy Components
BUY ITM CALL
Buy 1 lowest strike
SELL ATM CALL
Sell 1 lower-middle strike
SELL ATM CALL
Sell 1 upper-middle strike
BUY OTM CALL
Buy 1 highest strike
When to Use
- You expect the stock to stay in a range
- You want wider profit zone than butterfly
- You prefer defined risk with debit entry
- You have a range target rather than specific price
Best Market Conditions
- Low volatility expected
- Range-bound price action
- Clear support and resistance
Best Practices
- Place inner strikes at expected range boundaries
- Use near expiration for maximum decay
- Defined risk but lower probability than iron condor
- Works best in low volatility
Ready to Trade?
Review Long Condor and practice it in paper trading with the school workflow.
Paper Trading