---
description: "A neutral low-cost debit strategy using four calls with equidistant strikes K1 < K2 < K3 < K4, profiting if the stock stays between K2 and K3 at expiry."
tags: [options, income, neutral, condor]
---

# Long Call Condor

**Section**: 2.46 | **Asset Class**: Options | **Type**: Income

## Overview
The long call condor is a sideways strategy consisting of a long ITM call at K1, a short ITM call at K2 (higher), a short OTM call at K3, and a long OTM call at K4 (higher). All strikes are equidistant: K4 - K3 = K3 - K2 = K2 - K1 = kappa. This is a relatively low cost net debit trade. The trader's outlook is neutral. This is a capital gain strategy.

## Construction
- Buy 1 call option at strike K1 (ITM, lowest)
- Sell 1 call option at strike K2 (ITM, K2 > K1)
- Sell 1 call option at strike K3 (OTM, K3 > K2)
- Buy 1 call option at strike K4 (OTM, highest, K4 > K3)
- All same expiry; K2 - K1 = K3 - K2 = K4 - K3 = kappa (equidistant)

Net debit: D

## Payoff Profile
f_T = (S_T - K1)+ - (S_T - K2)+ - (S_T - K3)+ + (S_T - K4)+ - D

- Upper breakeven: S*_up = K4 - D
- Lower breakeven: S*_down = K1 + D
- Max profit: P_max = kappa - D  (if K2 <= S_T <= K3 at expiry)
- Max loss: L_max = D  (if S_T <= K1 or S_T >= K4)

## Key Conditions / Signals
- Neutral; expects stock to remain in the middle zone [K2, K3] at expiry
- Low implied volatility after entry; wider profit zone than a butterfly
- Low cost entry makes it efficient for betting on a range-bound stock

## Notes
The condor is a wider version of the butterfly: it has a flat profit plateau between K2 and K3 instead of a single peak. The tradeoff is that the maximum profit (kappa - D) is the same as the butterfly but requires K2 != K3 (four distinct strikes).