Condor Payoff Diagram. 50 stop150by1 objlongcall120 2 1 objshortcall110 4 1 objshortput90 4 1 objlongput80 2 1 objplotcolorblack linewidth2 objdescribe notice that we max a profit as long as the stock stays within a. One can either earn a profit on the invested amount or in the case of unfavorable conditions incur a loss.
Greeks of position when the underlying is near to the middle strikes meat the long butterfly and condor positions are. The width of the spreads minus the combined cost of the spreads is the maximum amount that can be gained. Create simulate and analyze.
The payoff diagram is well defined with a reverse iron condor.
Alternatively you can see iron condor as a combination of short strangle short put short call and long strangle long put long call. Investors use payoff graphs vs profit loss diagrams to determine returns from options trading. The payoff diagram is well defined with a reverse iron condor. If you expect an increase in volatility.