Long Call Condor
Four calls at four different strikes forming a condor with calls only — neutral, with gain between the inner strikes and capped loss on both sides.
Profit / Loss Diagram
Long Call Condor at expiration
What is this strategy?
The Long Call Condor is the all-calls version of the Iron Condor: it uses <strong>4 calls at 4 different strikes</strong> rather than combining puts and calls. Construction: buy 1 lower OTM call, sell 1 lower-middle OTM call, sell 1 upper-middle OTM call, buy 1 higher OTM call. The result is a neutral profile with a flat gain between the inner short strikes and capped losses beyond the outer long strikes.
Unlike the Iron Condor, which is a <em>credit</em> strategy, the Long Call Condor is a <em>small debit</em> strategy. The advantage is operational: using only calls can be more efficient at certain brokers or for products where puts are less liquid. The disadvantage is that the debit reduces maximum gain.
It suits situations where you expect the underlying to stay within a narrow range until expiration. It is more conservative than the Iron Condor in terms of margin required, but it needs a very specific outcome to reach maximum gain. Particularly useful on indices or ETFs with deep call liquidity.
Construction
| Action | Instrument | Strike | Expiration | Example |
|---|---|---|---|---|
| BUY | 1 Call | Lower OTM (A) | 30-45 DTE | +1 SPY 440 Call |
| SELL | 1 Call | Lower-middle OTM (B) | Same expiry | -1 SPY 445 Call |
| SELL | 1 Call | Upper-middle OTM (C) | Same expiry | -1 SPY 455 Call |
| BUY | 1 Call | Higher OTM (D) | Same expiry | +1 SPY 460 Call |
Example
SPY at $445. You build a long call condor with strikes 440/445/455/460 at 30 DTE.
- Long 440 Call −$620 premium paid
- Short 445 Call +$380 premium received
- Short 455 Call +$120 premium received
- Long 460 Call −$50 premium paid
- Net Debit $170 (620 − 380 − 120 + 50)
- Maximum Gain $330 ($500 width − $170 debit) if SPY finishes between $445 and $455
- Maximum Loss $170 (the debit) if SPY < $440 or > $460
The Greeks
When price sits between the short strikes, delta is practically zero. It turns directional near the breakevens.
If price stays between the inner strikes, theta works in your favour: the short legs decay faster.
The structure is vega negative: it benefits from falling implied volatility.
Gamma risk sits near the inner strikes, where the position can flip quickly.
Position Management
- 01 Close at 50% of Profit As with any neutral structure, do not chase the last cent. Close at 50% of maximum profit to free margin and cut gamma risk.
- 02 Adjust if It Turns Directional If price approaches an outer strike, consider rolling the affected side or closing partially to limit the damage.
- 03 30–45 DTE Sweet Spot Expirations that are too short (under 21 DTE) carry extreme gamma. Too long (over 60 DTE) reduces effective theta.