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Neutral OutlookDefined RiskIntermediate LevelNeutral

Long Condor

Buy 1 lower OTM Call, sell 1 lower-middle Call, sell 1 upper-middle Call, and buy 1 higher OTM Call for a small debit to profit from a flat trading range.

Ideal IV Regime
Low IV
Capital Required
Low (₹12k - ₹25k)
Holding Duration
2 to 3 Weeks
Breakeven Formula
Lower BE = Lowest Strike + Debit; Upper BE = Highest Strike - Debit

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.

Interactive Payoff EngineRef: NIFTY 50 (@ 24,500)

Option Payoff Curve & Greeks

Lots:
Inspected Price
24,500
At Spot Price
P&L at Expiry
+3,750
Settlement Day Return
P&L Today (T+0)
+3,400
Immediate Move Est.
Breakeven Point(s)
₹24,250 | ₹24,750
Zero P&L Level
₹02,700-1,200BE: 24250BE: 24750Spot 24500240002450025000
Expiry P&L
T+0 Line (Today)
Breakeven
Drag slider below to stress test price moves
Simulation Slider: ₹24,000Selected: ₹24,50025,000

Net Option Greeks (Sensitivity Profile)

Values per 1 Lot standard unit
Net Delta (Δ)Direction
0.00
₹ move per ₹1 underlying change
Net Theta (Θ)Time Decay
+₹310/day
Daily decay erosion / accumulation
Net Vega (ν)Volatility
-₹220
P&L impact per 1% IV shift
Net Gamma (Γ)Curvature
+0.001
Rate of delta acceleration

Multi-Leg Position Structure (4 Legs)

ActionInstrument / StrikeTypeExpiryApprox DeltaEst. PremiumQty Ratio
BUY24,200 CECALLMonthly Expiry+0.65₹4201x
SELL24,400 CECALLMonthly Expiry+0.55₹2901x
SELL24,600 CECALLMonthly Expiry+0.42₹1801x
BUY24,800 CECALLMonthly Expiry+0.30₹1001x
Quantitative Mechanics

How the Structure Works

Tabletop profit plateau between inner short strikes.

A Long Condor is similar to a Long Butterfly, but instead of pinning at a single exact strike, it features a flat "tabletop" profit zone between the two middle strikes (24,400 to 24,600), giving you a much wider target area to achieve maximum profit.

Strike Selection Criteria

Institutional Strike Selection Rules

1Inner short strikes cover expected trading range; outer wings 200 pts wider.
Execution Playbook

Phased Execution Blueprint

Follow this structured sequence to eliminate emotional hesitation during order entry, lifecycle management, and final exit.

Phase 1Step 01

Tabletop Range

Deploy when expecting market to trade within a 200-pt channel.

Checklist:
Channel identified
Low debit

Interactive Margin & Position Size Calculator

Calculate exact lot sizing based on the 1-2% risk rule to preserve capital against Black Swan events.

Position Sizing & Margin Engine

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

Max Risk Budget
4,500
1.5% of portfolio
Recommended Position Size
1 Lots (25 Qty)
Mathematically sized
Total Trade Max Loss
3,500
1.17% of total capital
Est. Margin Required
8,000
3% margin utilization
SEBI & NSE Risk Management Guideline:Never allocate more than 30% of total liquid capital to a single options expiration cycle, even with defined-risk spreads. Keep a minimum of 40% free cash buffer to accommodate sudden IV spikes, margin surges, or rolling adjustment requirements.
Capital Preservation

Rigorous Risk Rules & Adjustment Protocols

Non-negotiable parameters for stop-loss triggers, portfolio caps, and firefighting adjustments when market tests your strikes.

Stop-Loss Rule
Max loss capped to small net debit.
Max Risk Budget
0.75% portfolio capital
Profit-Taking Trigger
Book at 70% of max profit.
Adjustment & Firefighting Protocols
  • Close when inside plateau.
Margin & Capital Guideline:

Defined risk; low margin.

Real Trade Case Study

NIFTY Long Condor Trade Walkthrough

July 2024Full Win
Setup Context & Rationale

Nifty traded in 24,400-24,600 band.

Legs Executed & Fill Prices

Bought 24200 / Sold 24400 / Sold 24600 / Bought 24800 CE (Debit = ₹50)

Key Post-Trade Takeaways
  • Stock stayed inside the 200-pt plateau.
Trade Accounting
Capital Allocated:
₹1,250
Maximum Risk Allowed:
₹1,250
Realized Net P&L:
+₹3,750 (+300% ROI)

Common Mistakes to Avoid

Overpaying for wings

Why it happens: Reduces R:R.

Solution: Ensure debit is <25% of strike width.

Institutional Pro Tips

Easier to win on than a Butterfly because of the flat profit plateau.
Knowledge Base

Long Condor FAQs

Why choose a Long Condor over a Butterfly?

The Long Condor gives you a wider profit plateau rather than requiring an exact single-strike pin.

Alternative & Complementary Strategies

SEBI Regulatory Risk Warning:Trading in derivatives (Futures & Options) carries substantial risk of loss and is not suitable for all investors. A SEBI study revealed that 89% of individual traders in the equity F&O segment incurred net losses averaging ₹50,000 annually. Content provided here is strictly for educational, analytical, and quantitative learning purposes, and does not constitute investment advice or solicitation under SEBI (Investment Advisers) Regulations.