Option Strategies

Condor Spread

A condor is a four-strike, defined-risk strategy that profits when the underlying stays inside a range (or, in the reverse construction, when it moves enough). It is related to the better-known iron condor, but the classic "condor" is usually built with all calls or all puts (four legs of the same type) instead of mixing short call and short put verticals.

If you have not yet read Vertical Spreads, do that first—a condor is essentially two verticals stacked to shape a wider middle profit zone.

Long call condor (debit, range-bound idea) — same expiration, four strikes in order A < B < C < D:

Buy one call at strike A (lowest)
Sell one call at strike B
Sell one call at strike C
Buy one call at strike D (highest)

You pay a net debit. The position does best if the stock finishes between the short strikes (B and C) at expiration. Max loss is typically limited to the debit paid (plus fees) if the stock finishes below A or above D. Wing widths should match so the risk stays defined and easy to reason about.

How this differs from an iron condor: an iron condor is usually a credit trade: a bear call vertical above the market plus a bull put vertical below it. A same-type condor is often entered as a debit structure with a similar “profit in the middle” shape. Brokers sometimes label both families under condor / iron-condor order tickets—read the legs before you click send.

As with other multi-leg strategies, prefer liquid underlyings, watch commissions and wide markets, and confirm the max loss your platform shows before trading live.