Volatility strategy · Advanced
Market outlook Large move either way
Bear put and bull call spreads seek movement beyond wings.
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 outer long strikes further from the inner short strikes for a larger maximum payout.
Key difference: Higher max profit potential at a higher net debit.
Best for: Traders expecting a very large move who want more payout per contract.
Bring the two short (inner) strikes closer together, tightening the flat middle zone.
Key difference: Smaller flat zone with no payoff, meaning a smaller move is needed to start profiting.
Best for: Traders who expect a move but aren't confident it will be dramatic.
Common questions
Both profit from a big move, but the reverse iron condor caps both the maximum profit and maximum loss with its long wings, while a long strangle has unlimited upside potential.
Between the two short (inner) strikes, all four legs largely offset and the position loses value to time decay without much price sensitivity — this is the region you want the stock to move away from.
The extra short legs reduce the net cost of entry and define the maximum loss precisely, at the cost of also capping how much you can make if the move is extremely large.
No — four legs with a debit-based, movement-seeking payoff structure require careful strike selection and are best suited to traders already comfortable with simpler multi-leg spreads.
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 volatility structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the reverse iron condor
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.