Short Put Condor

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Short Put Condor Strategy is a range bound. It offer good Reward / Risk with low cost

Legs:4Risk:Limited RiskProficiency :Advanced

Example:

Instrument	Qty	Price
BUY NIFTY 30-Jun-26 22600 PE	65	1.85
SELL NIFTY 30-Jun-26 24100 PE	65	108.2
SELL NIFTY 30-Jun-26 25600 PE	65	1517.9
BUY NIFTY 30-Jun-26 27100 PE	65	0

When To Execute?

Short Put Condor is directional neutral strategy wherein you expect less volatility in the stock. It is similar to Short Put Butterfly Spread with variation that instead of selling 2 ATM Put , we sell 1 ITM Put and 1 OTM Put..In scanario where strike difference between 1st and 2nd strike is not equal to difference between 3rd and 4th strike;it is known as Modified Short Put Condor Strategy

Trade

Buy 1 ITM Put, Sell 1 middle ITM Put, Sell 1 middle OTM Put and Buy 1 deep OTM Put

Advantages

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Short Put condor provides high yielding strategy with low cost. It is best suited for low volatility stock. It is idle for current month expiry

Disadvantages

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Time decay is harmful is the stock is below first strike or above fourth strike Put and advantageous if the stock is between second and third strike Put

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Maximum Profit

Maximum profit in the strategy is when stock expires between the two short calls. Maximum Profit is difference between first and second strike less net outflow

Maximum Loss

Maximum Loss is net outflow between buy Puts and sell Puts. Maximum Loss is when stock expires at or below first strike or at or below highest call