Build a Short Call Condor Strategy

What is a short call condor?

DirectionalLimited ProfitLimited Loss

Similar to a short call butterfly, but the middle options have different strikes. It has a wider unprofitable range than a short call butterfly, but the potential profit outside of that range is higher and the maximum loss is lower

ABCDProfitLossStock Price
  • Sell a call at strike A
  • Buy a call at strike B
  • Buy a call at strike C
  • Sell a call at strike D