Short Call Condor option strategy
Short Call Condor Strategy is a Volatility strategy. It is opposite to Long Call Condor. It offer lower reward for relatively higher risk.
Payoff at expiry
Nifty, lot size 65 · Nifty future 25,151 · 17 Nov 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| SELL | ITM Call | 25,100 | 1 | 65 | ₹139.72 |
| BUY | ATM Call | 25,150 | 1 | 65 | ₹113.01 |
| BUY | OTM Call | 25,200 | 1 | 65 | ₹89.81 |
| SELL | OTM Call | 25,250 | 1 | 65 | ₹70.09 |
How it works
- Sell 1 ITM call at the 25,100 strike for ₹139.72, collecting the premium.
- Buy 1 ATM call at the 25,150 strike for ₹113.01, paying the premium.
- Buy 1 OTM call at the 25,200 strike for ₹89.81, paying the premium.
- Sell 1 OTM call at the 25,250 strike for ₹70.09, collecting the premium.
- You receive a net ₹454 upfront for the position. This is the most you can make.
Below 25,107 you profit, up to ₹454.
Between 25,107 and 25,244 you lose, up to ₹2,796.
Above 25,244 you profit, up to ₹454.
Set-up: Sell 1 ITM Call, Buy 1 middle ITM Call, Buy 1 middle OTM Call and Sell 1 deep OTM Call.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 23,650 | −6% | +₹454 |
| 24,400 | −3% | +₹454 |
| 24,900 | −1% | +₹454 |
| 25,150 | Unchanged | −₹2,796 |
| 25,400 | +1% | +₹454 |
| 25,900 | +3% | +₹454 |
| 26,650 | +6% | +₹454 |
How the Greeks affect it
When to use
Short Call Condor is a volatility strategy that expects big move in underlying to make money. 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 Short Call Condor Strategy.
- Idle for the stock that is range bound for the long time and is expected to give breakout/ breakdown. It is net credit strategy with defined reward to risk.
Things to watch
- Time decay could be beneficial if the stock is near the extremes and can hurt if the stock expires between middle two strike. 2.Higher profit potential comes only near expiration.
Short Call Condor: questions
What is a Short Call Condor strategy?
Short Call Condor Strategy is a Volatility strategy. It is opposite to Long Call Condor. It offer lower reward for relatively higher risk.
When should you use a Short Call Condor?
Short Call Condor is a volatility strategy that expects big move in underlying to make money. 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 Short Call Condor Strategy.
How do you set up a Short Call Condor?
Sell 1 ITM Call, Buy 1 middle ITM Call, Buy 1 middle OTM Call and Sell 1 deep OTM Call.
What is the maximum profit of a Short Call Condor?
It is the net credit strategy. Maximum Profit arrives if the stock closes above highest call or below the first call.
What is the maximum loss of a Short Call Condor?
Maximum Loss occurs if the stock fails to give any momentum and expires between the two bought calls. Maximum loss is difference between first and second call less net credit received.
What is the breakeven of a Short Call Condor?
With Nifty at 25,151, the example on this page breaks even at 25,107 and 25,244 at expiry.