Condor breakevens
Definition · Level 3 · Spreads & short options
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The two prices where a short iron condor makes nothing at expiry: the short put strike minus the total credit, and the short call strike plus the total credit.
Example
95/90 puts and 105/110 calls for 1.90 → 93.10 and 106.90.
Where Tradecraft teaches it
Level 3 · Spreads & short options, in the lesson “The short iron condor”: Two credit spreads on one expiry: a bet on a range, one worst case, its breakevens and the Greeks it carries.
Related terms
- Iron condor (desk usage)Unqualified, traders mean the credit version: sell an out-of-the-money put spread and an out-of-the-money call spread on one expiry.
- Short Iron CondorA short put spread plus a short call spread.
- 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).
- 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.