Iron Condor Calculator

Monetary calculations follow standard options arithmetic: net credit equals premiums collected from short legs minus premiums paid for long wings, adjusted for commissions. Maximum loss is computed as the dominant spread width multiplied by contracts and multiplier, less the net credit (net of commissions).

Probability-of-profit is a statistical approximation: strikes are converted to standardized distances (Z-scores) using the supplied implied volatility and time-to-expiry (trading days / 252). The normal cumulative distribution function is used to approximate the chance the underlying finishes between short strikes. This is an approximation and not a substitute for full risk models or broker margin calculations.

Security, accuracy, and data integrity recommendations follow relevant standards: NIST guidance for secure handling of market data, ISO risk management principles for clear disclosures, IEEE best practices for numerical computations and floating-point handling, and workplace safety guidance for operational controls where applicable. This tool includes accuracy caveats and encourages calibration against market data from your broker.

Use the calculator to estimate outcomes, compare different widths or credit levels, and test sensitivity to implied volatility and expiry.

This tool provides approximations useful for planning and risk awareness. Confirm margin and actual realized P&L with your broker.

Example: Underlying at $100, short put 95/long put 90 and short call 105/long call 110 with net premiums producing $0.55 net credit per share, multiplier 100, 1 contract: net credit = $55, max loss = (5 × 100) − 55 = $445.

If expiry is 30 days and implied volatility 20%, the approximate probability of finishing between breakevens is computed via the standard normal CDFs of the Z-scores for the short strikes. This gives a quick view of trade odds but not a complete risk report.