Condors & iron butterflies
Range-bound
Debit
Risk: Defined both ways
Long call condor
Also called: Call condor
Buy a lower call, sell two middle calls at different strikes, buy a higher call: an all-call condor paid for upfront that profits in a range.
Payoff sketch (per unit, index points)
At expiry
Today (7 days left)
Net premium
Debit 26 pts
Max profit
+74 pts (₹4,811 per lot)
Max loss
−26 pts (₹1,689 per lot)
Breakeven
24,826 / 25,174
How it works
At expiry it has the same shape as an iron condor but is entered for a debit, because the lowest call is in the money.
The in-the-money legs are more expensive to trade (wider spreads, more premium turnover) and a long call left in the money at expiry attracts exercise STT.
When traders use it
- A range view expressed with calls only, for example when puts are illiquid on a stock.
Greeks
| Delta | Near zero when centred. |
| Gamma | Negative between the inner strikes. |
| Theta | Positive between the inner strikes. |
| Vega | Negative. |
Profit, loss and margin
| Max profit | (Gap between the lower two strikes − net debit) × quantity, between the inner strikes. |
| Max loss | The net debit plus charges, outside the outer strikes. |
| Breakeven | Lowest strike + net debit; highest strike − net debit. |
| Margin | Little beyond the debit once the long legs are in. |
In India
- SPAN margins the whole position, so a defined-risk spread usually blocks far less than its short leg alone. Brokers grant the hedge benefit only when the protective leg is actually in the account, which is why the long leg is usually placed first.
- A long option that finishes in the money is exercised automatically. STT is then charged on its intrinsic value at the exercise rate (0.15% from 1 April 2026 in Arthfy's cost model), instead of the sale rate on the premium (also 0.15%) that applies when the option is sold before the close. See the lesson on the STT exercise trap.
- Stock options and stock futures are physically settled: an in-the-money stock option held through expiry becomes a delivery of shares (taxed and margined like a delivery trade, on the full value), so brokers often square such positions off in expiry week or raise margins. Index options are cash-settled.
Arthfy numbers
At expiry this has the iron condor's shape; see the iron condor page for Arthfy's history of it. See Iron condor.
Try it in the F&O hub
Opens the tool with this structure on today's NIFTY chain. Reading is free with an Arthfy account; some runs use free attempts.Open in the builderPayoff, Greeks, scenario grid and charges on today's NIFTY chain
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Replay on expiry daysMinute data since October 2024
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