# Condor Spread: Four Strikes and a Wider Profit Zone

Learn the long call condor's four-leg payoff, debit, maximum gain and loss, break-even points, and how it differs from an iron condor.

Canonical: https://wiki.fcontext.com/options/condor-spread/
Fact checked: 2026-07-22

> For educational purposes only; not investment advice.

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## Direct answer

A **long call condor** combines four calls with the same expiration at ascending strikes `K₁ < K₂ < K₃ < K₄`: buy `K₁`, sell `K₂`, sell `K₃`, and buy `K₄`. With equal outside widths, it is a limited-risk debit position that reaches maximum expiration value throughout the interval from `K₂` to `K₃`.

Unlike a butterfly, the two short strikes are different, creating a wider maximum-value plateau. Unlike an iron condor, the standard call condor uses one option type; an iron condor combines a put spread and a call spread and is commonly entered for a net credit.

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## Expiration payoff

For one long call condor, expiration value before premium is:

`max(Sₜ−K₁,0) − max(Sₜ−K₂,0) − max(Sₜ−K₃,0) + max(Sₜ−K₄,0)`

If the strikes are equally spaced so `K₂−K₁ = K₄−K₃ = W`, and the entry debit is `D`:

- Maximum loss is `D` when `Sₜ ≤ K₁` or `Sₜ ≥ K₄`.
- Maximum profit is `W−D` when `K₂ ≤ Sₜ ≤ K₃`.
- Break-even points are `K₁+D` and `K₄−D`.

These formulas require equal wing widths, one-to-one quantities, the same expiration, and `D < W`. Unequal strikes or ratios create an asymmetric payoff and must be calculated piece by piece.

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## A 95/100/105/110 call condor

Suppose the four calls have one expiration and the position is:

- Buy the 95 call for `8.50`.
- Sell the 100 call for `5.50`.
- Sell the 105 call for `3.00`.
- Buy the 110 call for `1.50`.

Net debit is `8.50−5.50−3.00+1.50=1.50` per share. With a 100-share multiplier, maximum loss is `$150`. Wing width is `5.00`, so maximum profit is `(5.00−1.50)×100=$350` when expiration price is from `100` through `105`. Break-even points are `95+1.50=96.50` and `110−1.50=108.50`, before fees.

At expiration `Sₜ=103`, the 95 call is worth `8`, the 100 call `3`, and the higher calls zero. Package value is `8−3=5`; profit is `(5−1.50)×100=$350`. Before expiration, IV, time, skew, and bid-ask spreads make the position value differ from this payoff diagram.

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## Execution and management risks

- Enter and exit as a four-leg net-limit order when practical; legging creates temporary Delta, Vega, and price exposure.
- Verify all four strikes, sides, quantities, expiration, multiplier, and the debit or credit sign.
- Use executable package quotes, not the sum of four optimistic midpoints.
- Stress prices below `K₁`, across both slopes, on the `K₂–K₃` plateau, and above `K₄`.
- Reprice before expiration across spot and IV scenarios; maximum payoff is not the same as current mark-to-market profit.
- Watch short calls for early assignment, especially around ex-dividend dates, and understand the stock positions that mismatched exercise can create.
- Close or manage expiration deliberately. Pin risk can leave some legs exercised and others not exercised.
- Fees apply to four legs at entry and again at exit; they reduce both break-even accuracy and maximum net profit.
- For unequal wings, abandon the symmetric shortcuts and sum each leg in every price region.

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## Common misconceptions

- “Condor always means iron condor.” A call or put condor uses one option type; an iron condor uses both puts and calls.
- “Any price inside the outer strikes is profitable.” Profit begins only beyond the lower break-even and ends at the upper break-even.
- “The maximum profit occurs at one exact strike.” A condor has a plateau between the two middle strikes; a symmetric butterfly peaks at one strike.
- “A wider plateau is free.” Wider short-strike separation generally changes premium, probability, and reward; compare the complete quote.
- “Defined expiration loss removes assignment risk.” Early assignment and expiration processing can create temporary stock and funding needs.
- “The formula works for uneven wings.” The simple `W−D` and break-even formulas assume equal outside widths.

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## Related topics

- [Butterfly Spread](/options/butterfly-spread/)
- [Vertical Spread](/options/vertical-spread/)
- [Bid-Ask Spread](/options/bid-ask-spread/)
- [Assignment Risk](/options/assignment-risk/)

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## Authoritative sources

- [Trading Strategies](https://res-certification.cboe.com/resources/options/Trading_Strategies.pdf) - Cboe Options Institute
- [Cboe S&P 500 Iron Condor Index Methodology](https://cdn.cboe.com/api/global/us_indices/governance/CNDR_Methodology.pdf) - Cboe Global Indices
- [Characteristics and Risks of Standardized Options](https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document) - Options Clearing Corporation