Snapshot
Legs
Buy 1 Low Call + Sell 1 Mid-Low Call + Sell 1 Mid-High Call + Buy 1 High Call
Outlook
Neutral / Range-Bound
Max profit
Width between adjacent strikes minus net debit paid
Max Loss
Net debit paid
A long call condor option strategy involves four call options with four distinct strike prices. You buy one low-strike call, sell one second-lowest call, sell one second-highest call, and buy one high-strike call. You pay an upfront net debit to open the trade. Traders use this strategy when they expect the stock price to settle within a specific target range between the two middle strike prices by expiration.
The maximum profit equals the distance between adjacent strikes minus the net debit paid, earned if the stock closes between the two middle strike prices at expiration. The maximum loss is strictly capped at the initial net debit paid if the stock closes below the lowest strike or above the highest strike.
Example
Stock
$100
Trade
- Buy $90 Call for $11.00
- Sell $95 Call for $6.50
- Sell $105 Call for $1.50
- Buy $110 Call for $0.50
→ $3.50 debit ($350)
Breakevens
$93.50 / $106.50
Outcomes
- Stock between $95 and $105: +$150 Max Profit
- Stock at $93.50 or $106.50: $0 Breakeven
- Stock ≤ $90 or ≥ $110: -$350 Max Loss