Options strategy tool · SPY & QQQ

Iron condor calculator: payoff, max profit, max loss and breakevens

Sell an out-of-the-money put spread and an out-of-the-money call spread together. You collect a credit and profit if price stays between the two short strikes through expiration.

Underlying Price

Edit to the current price.

Days to expiration Implied volatility %

Contracts Premiums Use my own prices

Net—

Max profit—

Max loss—

Breakeven(s)—

Chance of profit*—

Reward : risk—

Price at expiration — → P/L —

At expirationEstimated value todayCurrent price

*Model estimate of finishing profitable at expiration, using a lognormal price distribution from the implied volatility above. Ignores skew, dividends and early assignment.

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How a iron condor is built

Buy a put (lowest strike), sell a put, sell a call, buy a call (highest strike). All same expiration; the short strikes sit on either side of the current price.

Max profit: Total net creditMax loss: Widest wing width − net creditBreakevens: Short put − credit · Short call + credit

Example. SPY near 775: buy 765 put, sell 770 put, sell 780 call, buy 785 call for a $2.40 credit. Max profit $240; max loss (5 − 2.40) × 100 = $260; breakevens $767.60 and $782.40 (illustrative numbers).

Benefits

Profits if price simply stays inside a range, with no need to call direction.
Time decay works in your favor.
Risk is defined on both sides.
Typically a higher probability of profit than a directional spread, because the profit zone is wide.

Risks and trade-offs

Max loss is larger than max profit; one breach can erase several winners.
A gap or trend through a wing hits the full loss.
Rising implied volatility works against the position.
Four legs mean more commissions and slippage, and short legs can be assigned early.

When traders use it

Traders consider an iron condor when they expect a range-bound market and richer-than-usual option premium, often after a volatility spike or when the structure shows balance between support and resistance.

SPY and QQQ specifics

SPY and QQQ options are American-style, so short legs can be assigned before expiration, particularly when they are in the money or ahead of an ex-dividend date. Both have very liquid option chains, tight bid/ask spreads and expirations every trading day, which matters for multi-leg strategies where each leg adds slippage. Strikes are in $1 increments near the money. Check current implied volatility and liquidity before relying on any estimate here.

Frequently asked questions

What is an iron condor?

A four-leg options strategy combining a bull put spread and a bear call spread. It collects a credit and profits if the underlying finishes between the short strikes.

What is the max profit on an iron condor?

The total net credit received, times 100 per contract, kept if price finishes between the short strikes.

What is the max loss on an iron condor?

The width of the wider spread minus the total credit, times 100 per contract.

What are the iron condor breakevens?

The short put strike minus the credit, and the short call strike plus the credit.

Is an iron condor good for SPY or QQQ?

SPY and QQQ are liquid and have tight option markets and daily expirations, which suits multi-leg structures. Whether a given condor fits depends on implied volatility, the width you choose and the expected range.

Know the map before you choose the contract.

The overnight ES/NQ structure, key levels and catalysts, in SPY and QQQ terms, before the 9:30 ET open.

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Educational payoff arithmetic only. Premiums are model estimates (Black-Scholes, no dividends or skew) unless you enter your own, and real fills, commissions and early assignment will differ. Options involve risk and are not suitable for all investors. LiquidityLevels provides educational market commentary, not financial advice or a recommendation to trade any strategy.