Iron Condor Math and Calculations

Iron Condor Trading Video

Interested in learning about the iron condor? When you are just getting started in learning options trading the way the prices and credits are calculated can be a bit confusing. Order entry is another confusing topic that costs a lot of new traders a lot of money.

In this video I go over the math of the iron condor. You will learn how to calculate the credit, the max loss, the margin, and the potential return on investment.

Want to see more content like this about how to trade iron condors? Come visit our blog section and follow us at Twitter for regular option trading advice updates. And if you have questions about the video, please leave your notes on the comment section below.


  1. DANIEL on November 12, 2011 at 4:58 pm

    concise and clear. thanx!


    • Jon Heyes on September 3, 2019 at 12:27 am

      Wondering why people would risk 1500 to make 201.

      • Ameen Kamadia on September 9, 2019 at 12:37 pm

        Well that would be a 13% profit. In a month. In a trade with a very high probability of working out. Plus you are not risking the whole $1500. You would of course be exiting the trade with a much smaller loss if they trade goes against you.

  2. AL on November 30, 2012 at 3:16 pm

    very clear and simple. Thanks.

  3. Doug on December 7, 2012 at 7:26 pm

    Nice and to the point. Really cleared things up for me. Thanks!

  4. Yadao on September 22, 2013 at 9:23 pm

    Appreciated your excellent explanation. Thanks.

  5. kanu on September 23, 2013 at 8:33 am

    I love IC only problem i run into how to pick the stock to do condor any help in this direction. most of the time my condors are expire worth less & i keep the premimum, i always have front,2nd,3rd month all the time,need edge how to pick the stock for condor, any help appreciate.

  6. Paul on October 21, 2013 at 6:12 pm

    Thanks for the video OG. This is a great example of why I choose to join. Very well done, easy to understand. A nice tool for reviewing before putting on a trade. I also understand Kanu’s point, finding the right stocks are always the challenge. Thanks again.

  7. Bimal Kundu on December 7, 2018 at 2:53 pm

    IC. Options need to expire out of money on both side call and put to gain on both sides. If it goes In the Money on expiration on any side that may be assigned at a huge loss. Or In the Money side can be closed earlier before expiry reversing both sides and paying additional brokerage. Am I correct ? If correct Which is better?
    After closing one side, the IC will be either Call vertical or Put vertical and overall profit will be reduced ? Am I correct?
    I find very little premium available on both sides to do to justfy the Risk. Any remedy? Thanks

  8. Bimal Kundu on December 8, 2018 at 12:50 pm

    There is hardly any premium when going far out of money fer better safety. Any solution?

  9. Fran on September 26, 2019 at 9:40 pm

    Is the ROI you calculated an annualized return, rather than a return on the number of days held? Where would the number of days held be put into the formula to figure the actual return received?
    Thank you.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.