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

# Long Put Condor

**Section**: 2.47 | **Asset Class**: Options | **Type**: Income

## Overview
The long put condor is a sideways strategy consisting of a long OTM put at K1, a short OTM put at K2 (higher), a short ITM put at K3, and a long ITM put at K4 (highest). 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 put option at strike K1 (OTM, lowest)
- Sell 1 put option at strike K2 (OTM, K2 > K1)
- Sell 1 put option at strike K3 (ITM, K3 > K2)
- Buy 1 put option at strike K4 (ITM, highest, K4 > K3)
- All same expiry; K2 - K1 = K3 - K2 = K4 - K3 = kappa (equidistant)

Net debit: D

## Payoff Profile
f_T = (K1 - S_T)+ - (K2 - S_T)+ - (K3 - S_T)+ + (K4 - S_T)+ - 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 put condor has the same payoff structure as the call condor (by put-call parity). The flat profit plateau between K2 and K3 provides a wider target zone for pinning compared to a butterfly. Four distinct equidistant strikes are required.