Long Call Condor at a glance
| Construction | Buy 1 call three strikes below the current price, sell 1 call one strike below, sell 1 call one strike above, and buy 1 call three strikes above, all in the front month expiration, for a net debit. |
|---|---|
| Outlook | Neutral |
| Volatility view | Wants falling IV |
| Max profit | (Lower short strike minus lowest strike minus net debit) × 100. |
| Max loss | Net debit × 100. |
| Breakeven | Lower breakeven = lowest strike plus net debit. |
| Experience level | Advanced |
| Also called | Call condor |
How a long call condor works
A long call condor stretches a call butterfly by splitting the short body across two strikes. It combines a bull call spread on the lower pair of strikes with a bear call spread on the upper pair. The result has the same expiration payoff shape as an iron condor, but it is bought for a debit and uses only calls, so the lowest two strikes are in the money at entry. All four strikes are evenly spaced here, which keeps the two sides symmetric.
At expiration, below the lowest strike all four calls expire worthless and you lose the debit. From the lowest strike to the lower short strike, profit rises one for one. Between the two short strikes, the payoff is flat at its maximum, equal to the lower spread width minus the debit. From the upper short strike to the highest strike, profit falls back, and above the highest strike all gains and losses offset to a loss of the debit.
Before expiration, the condor gains slowly while the stock stays between the short strikes, since the short calls lose time value faster than the wings, and it benefits from falling implied volatility. Compared with a butterfly, the profit zone is wider but the maximum payoff relative to the cost is lower. Because the lower calls are in the money, their quotes can be wide, so pricing the four legs as a single order matters more than usual.
Long Call Condor example with real numbers
With the stock at $100, implied volatility at 30%, a 4.1% risk free rate and no dividend, you would buy 1 92.5 call (32 days) at $8.67, sell 1 97.5 call (32 days) at $5.11, sell 1 102.5 call (32 days) at $2.63, buy 1 107.5 call (32 days) at $1.17. That is a net debit of $210. At expiration a maximum profit of $290 and a maximum loss of $210, with breakevens at $94.60 and $105.40. The lognormal chance of profit is 46%.
These are theoretical American option prices from the Bjerksund and Stensland model, not live quotes. Load any ticker in the long call condor calculator above to run the same math on real market prices.
When to use a long call condor
- You expect the stock to stay within a moderate range rather than pin a single price.
- You prefer to buy a defined risk structure for a debit rather than sell an iron condor for a credit.
- Implied volatility is elevated and you expect it to ease.
- Call quotes on the stock are tighter or cheaper than the matching puts.
Max profit, max loss and breakeven
Maximum profit
(Lower short strike minus lowest strike minus net debit) × 100. It is earned if the stock closes anywhere between the two short strikes at expiration.
Maximum loss
Net debit × 100. It occurs if the stock closes at or below the lowest strike or at or above the highest strike at expiration.
Breakeven
Lower breakeven = lowest strike plus net debit. Upper breakeven = highest strike minus net debit.
Long Call Condor Greeks
- Delta: Close to zero between the short strikes, positive below them and negative above them.
- Gamma: Negative across the short strikes and positive near the outer wings.
- Theta: Positive when the stock sits between the short strikes, and negative near or beyond the wings.
- Vega: Negative in the profit zone, so a rise in implied volatility lowers the condor's value.
See the live numbers for your position in the Greeks tab of the calculator, or explore a single option in the options Greeks calculator.
Early exercise and assignment risk
Because the lower short call starts one strike in the money, a long call condor carries early assignment exposure from the first day, and the risk peaks the day before an ex dividend date if that call's time value is smaller than the dividend. If it is assigned, you are short 100 shares, and the lowest strike long call, two strikes deeper in the money, covers the obligation. You also owe the dividend if you remain short on the ex date, a cost the expiration payoff chart does not show.
If the stock rises above the upper short strike, that call can be assigned too, and the highest strike long call covers it. At expiration, with the stock between the short strikes, the lowest long call and the lower short call are both in the money and offset each other, while the upper short call expires worthless. A close near either short strike makes assignment on that leg uncertain, so the condor, or at least the threatened short call, is usually closed before the last trading hour.
The calculator's Early exercise risk tab flags short legs that are likely to be assigned. For a single option, use the early exercise calculator or read how early exercise and assignment work.
Pros and cons
Pros
- Wider profit zone than a butterfly, with risk limited to the debit.
- Uses only calls, which can be convenient when calls are more liquid.
- Benefits from time decay and falling implied volatility in the profit zone.
- No naked margin, because each short call is covered.
Cons
- Lower reward relative to risk than a butterfly with the same outer strikes.
- The in the money lower strikes have wider quotes and raise trading costs.
- The in the money short call faces early assignment risk, especially around dividends.
- Four separate strikes make adjustments more complex.
How to manage a long call condor
- Compare the call condor with an iron condor on the same strikes; the risk profiles match, so the better price wins.
- Take profits when a large share of the maximum value is reached, since the last portion arrives only at expiration.
- If the stock drifts toward a wing, roll the condor toward the price or close it.
- Monitor the in the money short call before ex dividend dates and close or roll it if its time value is below the dividend.
Long Call Condor FAQ
What is a long call condor?
A long call condor is a four leg debit spread made only of calls: one long low strike call, two short calls at different middle strikes, and one long high strike call. It profits most if the stock finishes between the two short strikes, with risk limited to the debit.
Long call condor vs iron condor: what is the difference?
A long call condor and an iron condor with the same four strikes have the same expiration payoff shape, but the call condor is bought for a debit using only calls, while the iron condor is sold for a credit using puts and calls. The call condor holds in the money calls, which adds early assignment and dividend risk on its lower short call.
Long call condor vs long call butterfly: which is better?
Neither is better in general: a long call condor has a wider, flat profit zone, while a long call butterfly peaks at a single strike with a higher maximum payoff for its cost. Traders tend to use the condor when they expect a range and the butterfly when they expect a specific price.
What is the max profit on a long call condor?
The maximum profit on a long call condor is the distance between the lowest strike and the lower short strike minus the net debit, times 100. It is earned if the stock closes anywhere between the two short strikes at expiration.
Related strategies
Long Put Condor
A long put condor is a four leg debit spread built entirely with puts that profits when the stock finishes between the two middle strikes at expiration.
Long Call Butterfly
A long call butterfly is a neutral, limited risk strategy built from three call strikes: buy one lower strike call, sell two middle strike calls and buy one higher strike call.
Iron Condor
An iron condor is a neutral, defined risk credit strategy that sells an out of the money put spread and an out of the money call spread on the same stock and expiration.
Short Call Condor
A short call condor is a four leg credit spread built with calls that profits when the stock makes a large move in either direction by expiration.
Educational tool, not financial advice. Calculations are theoretical and depend on your inputs; real fills, fees, early assignment and dividends can change results. Options involve risk and are not suitable for every investor.