Iron Condor
Sell an OTM Call Spread and an OTM Put Spread simultaneously to collect double premium in a range-bound market with strictly defined risk.
Interactive Payoff Curve & Greeks Simulation
Visualize the theoretical profit & loss at expiry vs T+0 immediate day curves. Drag the simulation slider to stress-test your trade.
Option Payoff Curve & Greeks
Net Option Greeks (Sensitivity Profile)
Values per 1 Lot standard unitMulti-Leg Position Structure (4 Legs)
| Action | Instrument / Strike | Type | Expiry | Approx Delta | Est. Premium | Qty Ratio |
|---|---|---|---|---|---|---|
| BUY | 23,900 PE (Long Wing) | PUT | Monthly Expiry | -0.10 | ₹35 | 1x |
| SELL | 24,200 PE (Short Put) | PUT | Monthly Expiry | -0.25 | ₹110 | 1x |
| SELL | 24,800 CE (Short Call) | CALL | Monthly Expiry | +0.25 | ₹110 | 1x |
| BUY | 25,100 CE (Long Wing) | CALL | Monthly Expiry | +0.10 | ₹35 | 1x |
How the Structure Works
Delta-neutral with positive Theta (+θ). You profit from the passage of time and the collapse of Implied Volatility.
The Iron Condor is the undisputed king of non-directional options trading. You sell both an OTM Put Spread (bullish credit) and an OTM Call Spread (bearish credit) around a consolidating market. As long as the underlying stays inside your wide profit cage (24,200 to 24,800), all 4 options expire worthless, yielding maximum profit.
Institutional Strike Selection Rules
Phased Execution Blueprint
Follow this structured sequence to eliminate emotional hesitation during order entry, lifecycle management, and final exit.
Range-Bound Filter
Confirm ADX < 20 and IV Percentile > 50.
4-Leg Basket Order
Execute all 4 legs simultaneously.
Interactive Margin & Position Size Calculator
Calculate exact lot sizing based on the 1-2% risk rule to preserve capital against Black Swan events.
Options Position Size & Max Risk Calculator
Total net liquid equity in your brokerage account
Recommended: 1.0% - 2.0% for disciplined longevity
Wing width max loss or defined mental/system SL
Rigorous Risk Rules & Adjustment Protocols
Non-negotiable parameters for stop-loss triggers, portfolio caps, and firefighting adjustments when market tests your strikes.
- Roll Untested Side: If market rallies toward short call, roll the put spread up closer to price to collect extra credit.
- Convert to Iron Butterfly: Roll untested spread all the way to tested strike.
SEBI requires margin for only ONE side of the spread (~₹50,000 per lot).
NIFTY Iron Condor (24200/23900 PE & 24800/25100 CE) Trade Walkthrough
Nifty traded sideways between 24,300 and 24,700 for 3 weeks.
Sold 24200 PE & 24800 CE / Bought 23900 PE & 25100 CE (Net Credit = ₹150 = ₹3,750 on 25 qty)
- Closed early at 50% profit; avoided late expiry week volatility.
Common Mistakes to Avoid
Why it happens: Gap moves breach wings instantly.
Solution: Only trade index or non-earnings stocks.
Institutional Pro Tips
Iron Condor FAQs
How much capital do I need for an Iron Condor in Nifty?
Approximately ₹45,000 to ₹60,000 per lot with full SEBI hedged margin relief.
Alternative & Complementary Strategies
Sell an OTM Call and an OTM Put at different strikes to collect premium with wider breakeven buffers than a straddle.
Sell an ATM Straddle and buy OTM protective wings (Call & Put) to create a defined-risk, high-credit neutral strategy.
Sell a higher OTM Put and buy a lower protective Put to collect upfront credit with strictly defined maximum risk.