Market Neutral Analysis
Iron Condor Calculator: AAPL
Professional scenario analysis and payoff visualization for iron condor credit spreads.
Iron Condor Scenario Analysis: AAPL
| Scenario Move (%) |
|---|
| Price at Expiry |
| Put Spread Loss |
| Call Spread Loss |
| Total Spread Loss |
| Profit / Loss |
| ROI on Risk |
* Click the percentage values to edit scenarios.
Payoff Profile At Expiration: AAPL
What this calculator does
The Iron Condor Calculator estimates the net credit received, maximum risk, and the safety buffer for range-bound trading. It provides a roadmap for neutral strategy management.
How the strategy works
A short iron condor is a credit strategy that sells an OTM put spread and an OTM call spread simultaneously. You receive an upfront credit and profit if the stock price stays inside the 'inner' short strikes at expiration.
Key Formulas
Max Risk = Max Spread Width - Net Credit
Lower Breakeven = Short Put Strike - Net Credit
Upper Breakeven = Short Call Strike + Net Credit
When traders use this strategy
This is a premier 'income' strategy used when a trader expects low volatility and wants to profit from time decay (theta) while the stock trades sideways.
Risks to understand
Risk is defined, but the max risk is often larger than the potential reward. A significant 'gap up' or 'gap down' past your outer strikes can result in the maximum loss quickly.
Example Interpretation
In the scenario workstation, moves between -5% and +5% (depending on your strikes) will likely show a steady 'Max Profit' credit. ROI declines as the stock moves further into the 'Spread Loss' rows for the call or put side.
Frequently Asked Questions
What is an iron condor?
A four-strike position using a put spread and a call spread to profit from sideways action.
How do you calculate iron condor profit?
The upfront credit minus any spread value remaining at expiration.
What are the breakeven prices?
The inner short strikes adjusted by the net credit received.
What is max profit?
The total premium collected when opening the trade.
What is max risk?
The width of the widest spread (Call or Put side) minus the total credit received.
This calculator and educational content are for educational purposes only and do not provide financial advice.