[DIAGRAM] Condor Option Payoff Diagram

Iron condor max profit = initial cash flow. Example.. Because the relationship between underlying price and payoff at expiration is linear (the payoff diagram is always a straight line), the break-even price (the point where the straight P/L line crosses zero on the way from +2 to -3) must be 2 pieces from the start (from $60) and 3 pieces.. Iron Condor Calculator shows projected profit and loss over time. An iron condor is a four-legged strategy that provides a profit plateau between the two inner legs. Maximum risk is limited.

This page explains iron condor profit or loss at expiration and the calculation of its maximum profit, maximum loss, break-even points and risk-reward ratio.. Iron Condor Basic Characteristics. Iron condor is a non-directional short volatility strategy with limited risk and limited profit potential.It got its name from the shape of its payoff diagram, which resembles a condor with wide wingspan:. A real-time options strategy analysis tool for Iron Condor, including interactive scenario simulations, using Yahoo Finance for live stock data and the Black-Scholes model for pricing options. Users can visualize the payoff diagram, calculate option Greeks (Delta, Gamma, Theta, Vega, Rho) - 6namdang/ironCondor