Condor Profit Diagram. As the ratio of riskreward is the higher the iron condor is a great strategy we could use when we need to reduce risks in a. Question 1 13 marks the condor is a specialised position that involves taking positions in options on the same underlying asset and with the same expiration date.
Profit or loss from an iron condor can be calculated as sum of pl of these two strategies. The solid dark blue line on the graph shows the profit. The profit diagram for a long condor position is illustrated below.
Ct max0 st k and pt max0 k st quick quiz.
The solid dark blue line on the graph shows the profit. Total profit from the iron condor trade equals initial cash flow net premium received when entering the position. Trade options free for 60 days when you open a new optionshouse account. Long and short condors.