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Long Call Condor - An Option Trading Strategy.

Today's article is all about the long-call condor option strategy. This options strategy has limited risk and limited reward. When traders are expecting no or little movement, it is the best time to utilize this strategy. The strategy gets the profit from the time decay factor.

The long call condor strategy has four legs, meaning it has four options contracts. This strategy is similar to a long butterfly, only with the difference in strike prices.

When to use this strategy?

  • This strategy is best when the trader expects no or minimal movement in the underlying asset in the coming time.

  • When the change in the underlying asset price is range bound, then this strategy is best to implement.

How to enter the long call condor option strategy?

To enter the long call condor option strategy, traders need to buy one in-the-money at a low price, sell one lower middle in-the-money call option, sell one higher middle out-of-the-money call, and buy one higher out-of-the-money call options contract. The in-the-money and out-of-the-money option contracts should be equidistant.

  • Buy 1 ITM call option contract.

  • Sell 1 ITM call option contract.

  • Sell 1 OTM call option contract.

  • Buy 1 OTM call option contract.

What is the highest profit in this strategy?

Traders will have the highest profit if the underlying asset closes between two short call options at the time of expiry. The lower strike-long call will have the max value. The profit in this strategy is the difference between the strike prices - the premium paid initially.

Breakeven point of long call condor option strategy?

The strategy has two breakeven points as below:

  • Upper breakeven point = highest long call strike price - premium paid

  • Lower breakeven point = lowest long call strike price + premium paid

Advantages of using the long call condor option strategy:

  • This strategy allows you to earn profit from the range-bound movement of the underlying asset with low capital.

  • Traders can earn high profits with limited risk exposure.

  • The amount of profit might be low compared to any other strategies, but the profit zone is broader.

How to exit from the long call condor strategy?

To exit from the long call condor strategy, you need to reverse your position, sell the options you bought and buy back the options you sold.


Eg. Nifty is currently trading @ 5500. Buying Call Option of Nifty having Strike 5300 @ premium 280, Strike 5700 @ premium 50 and Selling Call Option Strike 5400 @ premium 200, Strike 5600 @ premium 90 will help the investor benefit if Nifty trades between 5400 and 5600.





Premium Inflow

Long Call Condor

NIFTY (Lot size 50)

Buy Call


280 (Outflow)

Sell Call


200 (Inflow)

Sell Call


90 (Inflow)

Buy Call


50 (Outflow)

The Payoff Schedule and Chart for the above is below.

Payoff Shedule

NIFTY @Expiry

Net Payoff (Rs.)























In the above chart, the breakeven happens the moment Nifty crosses 5340 or 5660. The reward is limited to 3000 [calculated as (Difference in adjacent Sell and Buy Call strike prices - net premium paid) * Lot Size]. The risk is limited to 2000 (calculated as Net premium paid * Lot Size).

Note: Similar strategy can be constructed using Put Options as well

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