What is a Long Call Condor?
Buy lower call + sell lower-middle call
Creates the first vertical spread.
Sell upper-middle call + buy higher call
Creates the second vertical spread and caps risk.
Mental model: “I expect the stock to finish inside a range, not at one exact target price.”
Core structure
| Leg | Action | Example Strike |
|---|---|---|
| 1 | Buy 1 Call | $95 |
| 2 | Sell 1 Call | $100 |
| 3 | Sell 1 Call | $105 |
| 4 | Buy 1 Call | $110 |
All four options use the same expiration.
Worked example
Assume the stock trades near $102.
| Leg | Illustrative Premium |
|---|---|
| Buy $95 Call | -$9.00 |
| Sell $100 Call | +$6.00 |
| Sell $105 Call | +$3.00 |
| Buy $110 Call | -$1.00 |
Net Debit = $1/share = $100
Maximum profit
The maximum-profit zone is between the two short strikes: $100 to $105.
Wing Width = $100 - $95 = $5
Maximum Profit = ($5 - $1) × 100 = $400
Unlike a butterfly, the Condor has a plateau of maximum profit rather than one single peak price.
Maximum loss
Maximum Loss = Net Debit = $100
This occurs if the stock finishes at or below $95, or at or above $110.
Break-even points
Lower Break-even = $95 + $1 = $96
Upper Break-even = $110 - $1 = $109
Expiration outcomes
| Stock Price | Approximate Result |
|---|---|
| $90 | -$100 max loss |
| $96 | Lower break-even |
| $98 | +$200 |
| $100 | +$400 max profit |
| $103 | +$400 max profit |
| $105 | +$400 max profit |
| $108 | +$100 |
| $109 | Upper break-even |
| $115 | -$100 max loss |
When to use it
| Situation | Fit? | Why |
|---|---|---|
| Expect stock to finish in a range | Good fit | Profit peaks between the middle strikes. |
| Want defined risk | Good fit | Maximum loss is known at entry. |
| Need a wider target than a butterfly | Good fit | The max-profit plateau spans two strikes. |
| Expect a huge move | Poor fit | Large moves outside the wings cause max loss. |
Condor vs. Butterfly
| Feature | Condor | Butterfly |
|---|---|---|
| Number of strikes | 4 | 3 |
| Max-profit zone | Range | Usually one middle strike |
| Profit peak | Flatter / wider | Narrower / taller |
| Risk | Defined | Defined |
Long Condor vs. Iron Condor
| Feature | Long Call Condor | Iron Condor |
|---|---|---|
| Option types | Calls only | Puts + calls |
| Typical entry | Debit | Credit |
| Best outcome | Between middle strikes | Between short strikes |
| Risk | Defined | Defined |
Volatility, time decay, and assignment
Exact Greek behavior depends on where the stock sits relative to the strikes. Near expiration, the position becomes increasingly sensitive to whether price is inside or outside the middle-strike range.
The two short calls can be assigned before expiration if they become in the money. The long outer calls define risk, but assignment can still create temporary stock positions.
Pros and cons
Pros
- Defined maximum risk.
- Wider max-profit zone than a butterfly.
- Useful for a range-based thesis.
- Can offer attractive reward relative to debit.
Cons
- Requires four legs.
- Needs accurate range and timing.
- Large moves can cause max loss.
- Assignment risk on short options.
- Execution can be more difficult than simpler spreads.
How to close it
Close: Sell to Close both long calls + Buy to Close both short calls.
Common mistakes
- Confusing a Long Condor with an Iron Condor.
- Forgetting that the max-profit zone spans two strikes.
- Ignoring commissions and bid-ask spreads on four legs.
- Holding too close to expiration without understanding assignment.
- Using the strategy when expecting a major breakout.
Beginner checklist
| Check | Question |
|---|---|
| ☐ Range thesis | What range do I expect at expiration? |
| ☐ Net debit | What is the exact amount I can lose? |
| ☐ Middle strikes | What is my max-profit zone? |
| ☐ Break-evens | What are my lower and upper break-even prices? |
| ☐ Assignment | Can I manage assignment on the short calls? |
| ☐ Liquidity | Are all four strikes liquid? |
| ☐ Alternative | Would a Butterfly or Iron Condor better fit my outlook? |
Key takeaway
Long Call Condor = Buy Lower Call + Sell Two Middle Calls at Different Strikes + Buy Higher Call
It is a defined-risk range strategy with a wider maximum-profit zone than a butterfly.
The trade-off is: more room to be right, but usually a lower peak payoff and greater execution complexity.