Options / Iron condor
Payoff at expiry for a generic example with the stock at 100. Green is profit, red is loss, dashed lines are break-even prices.
A bull put spread and a bear call spread together. You receive a credit and keep it if the stock finishes between the two sold strikes.
When it is used: When you expect little movement, for example between earnings dates.
Main risk: A move beyond either bought strike produces the maximum loss, which is larger than the credit.
- Net credit
- $240 per contract
- Max gain
- +$240
- Max loss
- -$260
- Break-even
- 92.6 / 107.4
- Legs
- 4
The legs in this example
| Action | Contract | Strike | Example price |
|---|---|---|---|
| Buy | 1 put | strike 90 | $1.00 per share |
| Sell | 1 put | strike 95 | $2.20 per share |
| Sell | 1 call | strike 105 | $2.20 per share |
| Buy | 1 call | strike 110 | $1.00 per share |
Research that fits this view
Our latest Hold-rated company research, for readers who want to see the thinking behind a neutral view. This is a link to research, not a trade idea.
- HALO: Hold-rated research (published 2026-11-03)
- MNDY: Hold-rated research (published 2026-11-03)
- WLDN: Hold-rated research (published 2026-11-03)
Results for this strategy
We track our own hypothetical examples privately and publish each result at least 30 days after the play has closed, wins and losses together, once there are enough closed plays to say something. None have closed yet. This table will list every closed play with its expiry result and a link to the research it came from.
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