Iron Condor Max Profit Calculator

How it is calculated

Enter the net credit per share, the width of ONE of the two spreads in dollars, and the number of contracts. Each US equity option contract covers 100 shares, so max profit = credit × 100 × contracts and max loss = (width − credit) × 100 × contracts. The risk/reward figure is max profit ÷ max loss, shown as a ratio to 1. Only one wing can be breached at expiry, which is why the loss uses a single width, not the sum of both. All three inputs must be above zero, the contract count must be a whole number (up to 1,000,000), and the credit must be smaller than the width; otherwise the tool shows no result. Commissions, fees and assignment costs are not included, so real results will be slightly lower.

Common mistakes

• Entering the credit for the whole position or in cents. The field is the net credit per share in dollars (1.60 means $160 per contract), and the tool applies the 100 multiplier itself.
• Entering the distance between the outer strikes of the whole condor as the width. Use the width of one spread, such as 5 for a 95/100 put spread; adding both would overstate the risk.
• Entering a credit equal to or larger than the width. A real condor cannot collect the full width, and the tool gives no result for that case.
• Entering a part contract such as 2.5. Contracts trade in whole numbers and fractions are rejected.
• Treating max profit as likely. It happens only if the underlying settles between the short strikes; the ratio does not show the probability of that. The tool also assumes both spreads have equal width, so for unequal wings use the wider width to be conservative.