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NeutralLimited riskAdvancedSpread / Mixed

Long Call Condor option strategy

Long Call Condor Strategy is a range bound strategy. It offers a good Reward / Risk with low cost. Long Call Condor is directional neutral strategy.

Payoff at expiry

Nifty, lot size 65 · Nifty future 22,650 · 6 Oct 2026
01k2k3k21,55022,10022,65023,20023,750Nifty
ProfitLossBreakeven

Legs

ActionOptionStrikeLotsQtyPremium
BUYITM Call22,600165₹161.78
SELLATM Call22,650165₹135.47
SELLOTM Call22,700165₹112.10
BUYOTM Call22,750165₹91.61
Strikes around the Nifty future; premiums modelled at the current at-the-money IV (live prices were unavailable).

How it works

  1. Buy 1 ITM call at the 22,600 strike for ₹161.78, paying the premium.
  2. Sell 1 ATM call at the 22,650 strike for ₹135.47, collecting the premium.
  3. Sell 1 OTM call at the 22,700 strike for ₹112.10, collecting the premium.
  4. Buy 1 OTM call at the 22,750 strike for ₹91.61, paying the premium.
  5. You pay a net ₹378 upfront for the position. This is the most you can lose.
AT EXPIRY

Below 22,606 you lose, up to ₹378.

Between 22,606 and 22,749 you profit, up to ₹2,872.

Above 22,749 you lose, up to ₹378.

Set-up: Buy 1 lot ITM Call, Sell 1 lot ATM Call, Sell 1 lot OTM Call and Buy 1 lot deep OTM Call.

What happens if Nifty moves

Profit or loss at expiry
Nifty at expiryMoveProfit / loss
21,300−6%−₹378
21,950−3%−₹378
22,400−1%−₹378
22,650Unchanged+₹2,872
22,900+1%−₹378
23,350+3%−₹378
24,000+6%−₹378

How the Greeks affect it

DeltaNear zero
Little direction exposure at entry. The position cares more about how far Nifty moves than which way.
GammaNear zero
Delta changes little as Nifty moves.
ThetaNear zero
Time decay has little net effect.
VegaNear zero
Changes in implied volatility have little net effect.
Signs are for the position as a whole at entry and change as the market and time move.

When to use

When you expect less volatility in the stock. It is similar to Long Call Butterfly Spread with variation that instead of selling 2 ATM Call , we sell 1 ATM Call and 1 OTM Call.In scanario where strike difference between 1st and 2nd strike is not equal to difference between 3rd and 4th strike;it is known as Modified Long Call Condor Strategy.

  • Long Call condor provides a high yielding strategy with low cost. It is best suited for low volatility stock. It is idle for current month expiry.

Things to watch

  • Time decay is harmful if the stock is below first strike or above fourth strike call and advantageous if the stock is between second and third strike call.

Long Call Condor: questions

What is a Long Call Condor strategy?

Long Call Condor Strategy is a range bound strategy. It offers a good Reward / Risk with low cost. Long Call Condor is directional neutral strategy.

When should you use a Long Call Condor?

When you expect less volatility in the stock. It is similar to Long Call Butterfly Spread with variation that instead of selling 2 ATM Call , we sell 1 ATM Call and 1 OTM Call.In scanario where strike difference between 1st and 2nd strike is not equal to difference between 3rd and 4th strike;it is known as Modified Long Call Condor Strategy.

How do you set up a Long Call Condor?

Buy 1 lot ITM Call, Sell 1 lot ATM Call, Sell 1 lot OTM Call and Buy 1 lot deep OTM Call.

What is the maximum profit of a Long Call Condor?

Maximum profit in the strategy is when stock expires between the two short calls. Maximum Profit is difference between first and second strike less net outflow.

What is the maximum loss of a Long Call Condor?

Maximum Loss is net outflow between buy calls and sell call. Maximum Loss is when stock expires at or below first strike or at or above highest call.

What is the breakeven of a Long Call Condor?

With Nifty at 22,650, the example on this page breaks even at 22,606 and 22,749 at expiry.

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