Broken-wing condor
Definition · Level 3 · Spreads & short options
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A condor whose two wings have different widths, e.g. an iron condor with a 5-wide put spread and a 10-wide call spread. The wider wing carries the worst case: the wider width minus the total credit.
Example
Sell 95/90 puts and 105/115 calls for 1.80 → max loss $820.
Where Tradecraft teaches it
Level 3 · Spreads & short options, in the lesson “Broken wings & ratio flies”: Bend a butterfly or a condor to one side: unequal wings and unequal quantities, and where the risk goes.
Related terms
- Broken-Wing ButterflyA butterfly with one wing pushed out: buy one call, sell two, and buy one much further away, so the two wings are different widths.
- Unbalanced ButterflyA butterfly with unequal quantities, here +1 / −3 / +2.
- Back-spread danger zoneWhere a back spread loses the most at expiry: the stock sitting at the long strike.
- BodyThe middle strike of a butterfly, short in a long fly: where a long fly earns the most at expiration.
- Breakeven win rateHow often a trade must win just to net zero, treating each outcome as a full win or a full loss: max loss ÷ (max profit + max loss).
- Butterfly profit and lossFor a long butterfly with equal wings: the most you can lose is the debit, and the most you can make is the wing width minus the debit, at the body.