1. What it is
Sell the lowest and highest strikes and buy the two inner strikes, using only calls or only puts at one expiration.
2. Why use it
Reverse a same-type condor to benefit from finishing outside its wings.
3. How the numbers work
View example
- Sell 1 × Call · Strike 90
- Buy 1 × Call · Strike 95
- Buy 1 × Call · Strike 105
- Sell 1 × Call · Strike 110
All option legs have the same expiration.
- Option premium received
- 2
- Expiration breakeven
- 92 / 108
- Maximum expiration profit
- 2
- Maximum expiration loss
- 3
- Underlying at expiration 100 → Loss 3
- Underlying at expiration 110 → Profit 2
4. How it changes
Near the center, the position often benefits from volatility expansion and suffers from time passing. Directional exposure changes as price leaves the center.
5. What to watch for
The central region is the loss plateau. Maximum loss is one outer width minus credit for equal-width wings.
ABG's Short Condor is an inverted all-call or all-put condor. Some references use that name for an iron condor, so always compare the legs.
Examples use illustrative entry prices and amounts per underlying unit, before costs. Contract amounts require the contract multiplier. Expiration payoffs assume the illustrated legs remain intact; earlier position values and exercise or assignment outcomes can differ.