Income strategies › Iron condor
Stop 6 of 7 on the CC Line
Iron condor two spreads, one range
A bull put spread plus a bear call spread. Profits if the stock stays in a range, with capped risk. Risk: Moderate (defined)
How it works
An iron condor combines both credit spreads: a bull put spread below the current price and a bear call spread above it, same expiry. You collect two credits. As long as the stock ends between the two short strikes, all four options expire worthless.
It's like a short strangle with safety nets on both sides, so the loss is capped.
When it earns
Calm, range-bound markets. Time decay works for you on both sides.
What can go wrong
- Max loss = width of one spread − total credit (only one side can lose at expiry). Example: $300.
- Four legs: commissions and platform fees are charged on 4 contracts to open and possibly 4 to close, which can eat a big slice of the credit.
- Big moves through either side hurt, and adjustments cost more fees.
- Early assignment / pin risk as with credit spreads.
Worked example Hypothetical
Fictional XYZ at $50. Sell the 45/40 put spread for $1.00 and the 55/60 call spread for $1.00: total credit $2.00 (= $200). Made-up premiums.
| Scenario (hypothetical) | Outcome |
|---|---|
| XYZ ends $45–$55 | Keep $200 (max) |
| Breakevens | $43 and $57 |
| XYZ ends below $40 or above $60 | −$500 + $200 = −$300 (max loss) |
How fees eat into the premium
Using each broker's published fees from our own data (verified 2026-10-25): the cost to open this example (4 contracts in one order) next to the hypothetical $200 credit, and the same trade if the premium were a tiny $0.10 per share. Holding to expiry avoids a closing order; closing early roughly doubles the fees.
Includes commission, platform fee, per-order minimums, estimated US regulatory fees and 9% GST; excludes FX and exchange fees. "Promo" means open-ended promos available to everyone (no new-customer offers). Try your own numbers in the fee calculator →
Where to find sell-put ideas
We don't publish option prices or trade ideas. Several Singapore brokers have built-in screeners inside their apps that filter options by strike, expiry, premium or probability, using live data you're licensed to see as their customer:
- moomoo SG: Its app has an options screening tool marketed as Easy Sell Put, plus a general options screener and strategy builder. moomoo SG (placeholder referral link) · fees
- Tiger Brokers SG: The Tiger Trade app has an options screener / strategy tools for filtering contracts. Tiger Brokers SG (placeholder referral link) · fees
- Webull SG: Webull's app includes an options screener and a strategy builder. Webull SG (placeholder referral link) · fees
- Interactive Brokers SG: IBKR's platforms include market scanners and options strategy tools (e.g. in TWS). Interactive Brokers SG (placeholder referral link) · fees
Feature names and availability change and may depend on your account's options approval level; check in the app. A screener result is not a recommendation. ⚠ Referral links above are placeholders (not live); if they become affiliate links we may earn a fee at no cost to you (disclosure).
The CC Line
Seven option income strategies, drawn as a train line. Board at CC1: each stop builds on the ones before it. Interchange stops combine earlier ones.