Short Put Condor
Expecting a large directional move outside the inner range — the put-based equivalent of the short call condor, used when the expected breakout is below the current price
Risk Profile at a Glance
How to Construct the Short Put Condor
- 1.Sell 1 put at strike D (highest)
- 2.Buy 1 put at strike C
- 3.Buy 1 put at strike B
- 4.Sell 1 put at strike A (lowest)
- 5.All same expiration, equally spaced strikes
- 6.Net credit
Understanding the Short Put Condor
The short put condor is the put-based equivalent of the short call condor. You sell the outer puts and buy the inner puts, collecting a small net credit. Maximum profit is the credit received when the stock moves outside the inner range. Maximum loss is the inner spread width minus the credit when the stock remains between the inner strikes.
Like the short call condor, this is a movement strategy — you want the stock to break out in either direction. The short put condor is most naturally used when the expected breakout might be to the downside, since puts become more relevant at lower stock prices. Advanced traders sometimes use short put condors to position for a crash or major decline while keeping costs low and risk defined. The structure is equivalent to the short call condor by put-call parity, so the choice is primarily driven by which strikes are more liquid and which structure is easier to enter with good pricing.
Active management at expiration is critical to avoid assignment on the short puts..
When to Use It — EdgeOS Signal Integration
- ✓Use when a bull or bear count approaches 9 — exhaustion signals a large pending move
- ✓Tight extension score (below 0.4) after a long consolidation — breakout imminent
- ✓High VIX with low IV term structure suggests realized volatility may exceed implied
Compare with Similar Strategies
Other Condors Strategies
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Frequently Asked Questions
What is the Short Put Condor options strategy?
The short put condor is the put-based equivalent of the short call condor. You sell the outer puts and buy the inner puts, collecting a small net credit.
When should I use the Short Put Condor?
Expecting a large directional move outside the inner range — the put-based equivalent of the short call condor, used when the expected breakout is below the current price
What is the maximum loss on the Short Put Condor?
The maximum loss is fully defined at entry: the net debit paid (for debit strategies) or the spread width minus the credit received (for credit spreads). You can never lose more than this amount.
How does the Short Put Condor compare to similar strategies?
The Short Put Condor is a directional credit strategy. Compared to the Short Call Condor (directional, credit), the Short Put Condor has limited max risk and limited max reward. Your choice depends on your directional bias, IV environment, and risk tolerance. The TraderValue strategy comparison tool lets you see the exact payoff differences side by side.