Strategies · Lesson 08 of 14 · Lab
Iron condor
An iron condor sells a put spread and a call spread at once, keeping the credit if the index finishes between them. On 22 September 2026 the NIFTY 23,300/23,400/23,500/23,600 condor collected ₹41.50 against a maximum loss of ₹58.50, with breakevens at 23,359 and 23,542. The index closed at 23,329 — 30 points outside — and it lost ₹29.30.
NIFTY weekly expiry, 22 September 2026 · MarketCue one-minute option-chain capture
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Prices captured at the open on Tuesday, 22 September 2026. NIFTY spot at the open: 23,460. The highlighted row is nearest the money.
NIFTY closed at 23,329, down 131 points from the open. Bought 23,300 PE at ₹7.65 → settled ₹0.05. Sold 23,400 PE at ₹20.75 → settled ₹70.85. Sold 23,500 CE at ₹36.00 → settled ₹0.05. Bought 23,600 CE at ₹7.60 → settled ₹0.05. Net loss of ₹29.30 per unit, or −71% of what was put up. This was the expiry, so those closing prices are settlement values.
Two credit spreads at once
The condor is a bull put spread and a bear call spread on the same expiry. Selling the 23,400 put and 23,500 call brought ₹56.75; buying the 23,300 put and 23,600 call cost ₹15.25. The net ₹41.50 is kept in full if the index finishes between the two sold strikes.
The flat top of the payoff is the point of the structure. Anywhere between 23,400 and 23,500 the outcome is identical, so the position is a statement about range rather than about level.
The wider preset moves the bought put two strikes further out. The credit rises and the maximum loss rises with it — there is no setting of this structure that improves both.
Split the structure to see where it went
The two half-presets isolate what happened. The call spread kept its entire credit: the index finished far below 23,500 and both calls expired at ₹0.05. The put spread lost ₹57.70, because the close at 23,329 sat 71 points inside the sold 23,400 put.
Netted, the condor lost ₹29.30 against a ₹41.50 credit and a ₹58.50 maximum. It did not reach its worst case, which would have required a close below 23,300.
Four legs carry four sets of brokerage and securities transaction tax, doubled if the position is closed rather than left to expire. Against a ₹41.50 credit those are a material fraction of the maximum gain, and they are incurred on winning and losing trades alike.
Common questions
What is an iron condor?
A four-leg structure combining a bull put spread and a bear call spread on the same expiry. It collects a net credit, keeps it if the underlying finishes between the two sold strikes, and has a maximum loss of the wing width minus the credit.
How do you calculate iron condor breakevens?
Sold put strike minus the credit, and sold call strike plus the credit. For the 23,300/23,400/23,500/23,600 condor at a ₹41.50 credit, those were 23,359 and 23,542.
What is the maximum loss on an iron condor?
The width of one wing minus the net credit. With 100-point wings and a ₹41.50 credit, the maximum loss was ₹58.50 per unit.
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Written and maintained by MarketCue research · Updated 9:30 AM IST · 23 October 2026
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