Options (part 17)
The iron condor Breakeven points
The formula for calculating Breakeven points is given below:
- Upper: Strike price of short Call option plus net premium received.
- Lower: Strike price of short Put option less net premium received.
The formula for calculating maximum loss is given below:
- Max Loss = Strike Price of Long Call – Strike Price of Short Call – Net Premium Received + Commissions Paid
Max Loss Occurs When Price of Underlying >= Strike Price of Long Call ...Continue Reading →