Short Call Condor
Expecting a significant move outside the range of the inner strikes — profits from movement, the opposite of the long condor
Risk Profile at a Glance
How to Construct the Short Call Condor
- 1.Sell 1 call at strike A
- 2.Buy 1 call at strike B
- 3.Buy 1 call at strike C
- 4.Sell 1 call at strike D
- 5.All same expiration, equally spaced strikes
- 6.Net credit
Understanding the Short Call Condor
The short call condor sells the outer strikes and buys the inner strikes, collecting a small net credit. It profits when the stock moves outside the inner strike range (below strike A or above strike D at expiration). The payoff is the mirror image of the long condor: maximum profit is the credit received when the stock is outside the wings; maximum loss is the inner spread width minus the credit when the stock stays within the inner range. This is a movement or breakout strategy.
It is rarely used as a standalone trade because the credit received is small and the maximum loss zone (the inner range) is wide. Traders use it to speculate on a breakout from consolidation at low cost. Converting a short strangle or short straddle to a condor by buying protective wings creates a defined-risk credit spread. The EdgeOS model identifies breakout potential when a stock has been range-bound (no count activity) and has a tight extension score — a short condor can be used to position for the eventual breakout..
When to Use It — EdgeOS Signal Integration
- ✓Use when a bull or bear count approaches 9 — exhaustion signals a large pending move
- ✓Tight extension score (below 0.4) after a long consolidation — breakout imminent
- ✓High VIX with low IV term structure suggests realized volatility may exceed implied
Compare with Similar Strategies
Other Condors Strategies
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Frequently Asked Questions
What is the Short Call Condor options strategy?
The short call condor sells the outer strikes and buys the inner strikes, collecting a small net credit. It profits when the stock moves outside the inner strike range (below strike A or above strike D at expiration).
When should I use the Short Call Condor?
Expecting a significant move outside the range of the inner strikes — profits from movement, the opposite of the long condor
What is the maximum loss on the Short Call Condor?
The maximum loss is fully defined at entry: the net debit paid (for debit strategies) or the spread width minus the credit received (for credit spreads). You can never lose more than this amount.
How does the Short Call Condor compare to similar strategies?
The Short Call Condor is a directional credit strategy. Compared to the Long Call Condor (neutral, debit), the Short Call Condor has limited max risk and limited max reward. Your choice depends on your directional bias, IV environment, and risk tolerance. The TraderValue strategy comparison tool lets you see the exact payoff differences side by side.