Name: Long Condor Spread w/ Puts

Setup: Buy (long) Strike A put and Sell (short) Strike B put and Sell (short) Strike C put and Buy (long) Strike D put

Bias: Neutral


Break-Even: Two break-even points:

  • Strike A + Debit paid
  • Strike D – Debit paid

Max Profit: Limited: Strike D – Strike C – Debit paid

Max Loss: Limited: Debit paid

Margin: No margin required

Time Decay: Time decay is your friend as you want Strike A and Strike B to expire worthless.

Implied Volatility: If the underlying is between Strike B and Strike C you want volatility to decrease.  Ideally you want the underlying to end up between these strikes for max profit.  A decrease in volatility will increase the value of your position and make the chances of a move outside of these strikes less likely.

Notes: None at this time

Featured in Trade Review: None at this time