Short Put Condor option strategy
Short Put Condor Strategy is a Volatility strategy. It is opposite to Long Put Condor. It offers 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 | OTM Put | 25,100 | 1 | 65 | ₹88.82 |
| BUY | ATM Put | 25,150 | 1 | 65 | ₹112.11 |
| BUY | ITM Put | 25,200 | 1 | 65 | ₹138.91 |
| SELL | ITM Put | 25,250 | 1 | 65 | ₹169.19 |
How it works
- Sell 1 OTM put at the 25,100 strike for ₹88.82, collecting the premium.
- Buy 1 ATM put at the 25,150 strike for ₹112.11, paying the premium.
- Buy 1 ITM put at the 25,200 strike for ₹138.91, paying the premium.
- Sell 1 ITM put at the 25,250 strike for ₹169.19, 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 Put, Buy 1 middle ITM Put, Buy 1 middle OTM Put and Sell 1 deep OTM Put.
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 Put Condor is a volatility based strategy that could be executed when one 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 Put 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 strikes.
- Higher profit potential comes only near expiration.
Short Put Condor: questions
What is a Short Put Condor strategy?
Short Put Condor Strategy is a Volatility strategy. It is opposite to Long Put Condor. It offers lower reward for relatively higher risk.
When should you use a Short Put Condor?
Short Put Condor is a volatility based strategy that could be executed when one 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 Put Condor Strategy.
How do you set up a Short Put Condor?
Sell 1 ITM Put, Buy 1 middle ITM Put, Buy 1 middle OTM Put and Sell 1 deep OTM Put.
What is the maximum profit of a Short Put Condor?
It is the net credit strategy. Maximum Profit arrives if the stock closes above highest Put or below the first Put.
What is the maximum loss of a Short Put Condor?
Maximum Loss occurs if the stock fails to give any momentum and expires between the two bought Puts. Maximum loss is difference between first and second Put less net credit received.
What is the breakeven of a Short Put Condor?
With Nifty at 25,151, the example on this page breaks even at 25,107 and 25,244 at expiry.