Long Put Condor option strategy
Long Put Condor Strategy is a range bound. It offer good Reward / Risk with low cost.
Payoff at expiry
Nifty, lot size 65 · Nifty future 22,946 · 19 Oct 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | OTM Put | 22,900 | 1 | 65 | ₹83.14 |
| SELL | ATM Put | 22,950 | 1 | 65 | ₹106.66 |
| SELL | ITM Put | 23,000 | 1 | 65 | ₹133.96 |
| BUY | ITM Put | 23,050 | 1 | 65 | ₹164.97 |
How it works
- Buy 1 OTM put at the 22,900 strike for ₹83.14, paying the premium.
- Sell 1 ATM put at the 22,950 strike for ₹106.66, collecting the premium.
- Sell 1 ITM put at the 23,000 strike for ₹133.96, collecting the premium.
- Buy 1 ITM put at the 23,050 strike for ₹164.97, paying the premium.
- You pay a net ₹487 upfront for the position. This is the most you can lose.
Below 22,907 you lose, up to ₹487.
Between 22,907 and 23,047 you profit, up to ₹2,763.
Above 23,047 you lose, up to ₹487.
Set-up: Buy 1 ITM Put, Sell 1 middle ITM Put, Sell 1 middle OTM Put and Buy 1 deep OTM Put.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 21,550 | −6% | −₹487 |
| 22,250 | −3% | −₹487 |
| 22,700 | −1% | −₹487 |
| 22,950 | Unchanged | +₹2,763 |
| 23,200 | +1% | −₹487 |
| 23,650 | +3% | −₹487 |
| 24,300 | +6% | −₹487 |
How the Greeks affect it
When to use
Long Put Condor is directional neutral strategy wherein you expect less volatility in the stock. It is similar to Long Put Butterfly Spread with variation that instead of selling 2 ATM Put , we sell 1 ITM Put and 1 OTM Put..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 Put Condor Strategy.
- Long Put condor provides 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 is the stock is below first strike or above fourth strike Put and advantageous if the stock is between second and third strike Put.
Long Put Condor: questions
What is a Long Put Condor strategy?
Long Put Condor Strategy is a range bound. It offer good Reward / Risk with low cost.
When should you use a Long Put Condor?
Long Put Condor is directional neutral strategy wherein you expect less volatility in the stock. It is similar to Long Put Butterfly Spread with variation that instead of selling 2 ATM Put , we sell 1 ITM Put and 1 OTM Put..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 Put Condor Strategy.
How do you set up a Long Put Condor?
Buy 1 ITM Put, Sell 1 middle ITM Put, Sell 1 middle OTM Put and Buy 1 deep OTM Put.
What is the maximum profit of a Long Put Condor?
Maximum profit in the strategy is when stock expires between the two short puts. Maximum Profit is difference between first and second strike less net outflow.
What is the maximum loss of a Long Put Condor?
Maximum Loss is net outflow between buy Puts and sell Puts. Maximum Loss is when stock expires at or below first strike or at or above highest strike.
What is the breakeven of a Long Put Condor?
With Nifty at 22,946, the example on this page breaks even at 22,907 and 23,047 at expiry.