Neutral strategy · Intermediate
Market outlook Range-bound
Defined-risk put and call spreads create profit range.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Space the short strikes further apart for a wider profit zone.
Key difference: Lower premium collected relative to the width, but higher probability of finishing profitably.
Best for: Traders prioritizing a high win rate over premium collected per trade.
Bring the short strikes closer to the current price for more premium.
Key difference: Higher premium collected but a smaller range in which the trade stays profitable.
Best for: Traders who want more income per contract and are comfortable with tighter tolerances.
Common questions
The long wings define and cap the maximum loss, letting you know your worst case in advance — a short strangle has undefined, potentially unlimited risk on a large move.
The stock stays between the two short strikes through expiration, all four legs expire worthless, and you keep the full net credit received.
The maximum loss is capped at the width of the wider spread minus the net credit received, realized if the stock finishes beyond either long strike at expiration.
Many traders close at 50% of the max profit received as a credit, since the remaining premium is small relative to the risk of holding to expiration through gamma risk near the strikes.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
Every neutral structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the iron condor
Head-to-head
Structure, cost, and breakeven differences compared side by side
Head-to-head
Structure, cost, and breakeven differences compared side by side
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.