Condor Spreads

The condor spread is similar to the butterfly spread strategy except that it involves four different strike prices. This strategy can be constructed using calls or puts. It is also a neutral option-trading strategy. Therefore his holder is also short volatility.


Using calls, a condor spread constitutes a long position in a call struck at a lower price K1, a short position in a call with a first intermediate strike K2, a short position in a call with a second intermediate strike K3, and long a call struck at a higher price K4.


The maximum payoff is equal to 2ε and occurs when K2 ≤ ST ≤ K3. The condor spread strategy is difficult to achieve since the holder has to trade in four different options simultaneously.


Add a comment


The NEW website is OUT! 

Go have a look at

You will find the content in the 'Derivatives Academy' section in a book format. 
The full content is not yet available as I am rewriting it and improving it.

You can try the Exotic Derivatives pricer under the 'Derivatives Pricer' section ( I will speed up the page soon as I forgot to compress some images.
Each application allows you to price differents products and contains links towards the correct section of the book. 
You will then be able to get practical and theoretical knowledge quite easily.

I teach quite often using the pricer. You can get so much information and answers to your questions thanks to it.

Take advantage of it as much as you can to hone your knowledge!

If you are looking for junior opportunities in the field of market finance. Register yourself on the website. It's free!

If you have any questions, do not hesitate to contact me on