What is the breakeven range for an Iron Condor and how do I calculate it?
An iron condor has two breakeven points - an upper and a lower. They are calculated as follows:
- Upper breakeven = Short Call strike + Net premium received
- Lower breakeven = Short Put strike − Net premium received
The wider the gap between the two short strikes and the more premium received, the wider your profit zone. The payoff chart on ArihantPlus shows both breakeven points clearly so you do not need to calculate them manually.
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