So I made an iron condor calculator and it’s break evens are very different from the one on this site. I basically just add and subtract the max profits from the current price to get the break evens. The spread median is the number where the upper and lower spread touch. Tell me what you guys think. What does their calculator calculate?IRON CONDOR BREAK EVENS AND RANGE.xlsx (13.1 KB)
Current price won’t be a factor in these calculations. They are based on price at expiration. Break even on the sold spread will be your entry price plus max profit on the bought spread - if your max profit on the buy is $50 then break even on the sell will be 50 ticks above your entry on the sold spread. If that price level is reached sometime before expiration, you won’t get out at exactly break even because of the premium still in the contracts.
Hope that helps.
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Thanks for the help, any helps. That actually is exactly what the formula is. I got both max profits and added them up. They are then added and subtracted from the current price to give the break evens. the current price has nothing to do with getting the distance for them.
hmm I see yeah not sure why I did that… Its from the spread floor on the sell side and the spread celling on the buy side
What are you trying to accomplish there already is a calculator?
We are making a new calculator with a few improvements let me know what you want on it.
After it is done the next goal will be to use our API to feed the data in direct.
I was trying to make something impossible happen…make the strikes wider then they are and figured that out. So i started doing butterflies cause they can get wider. question what was the logic of doing a butterfly at 80/20 instead of 90/10 isn’t it a better chance of it being in the money?
80 20
if it hits the strike and you exit both sides the probability is that your risk is equal to or less than your reward
90/10 yes probability is higher and 1 loss wipes out 5 wins thats no bueno (with bid offer one side wont do any good hedging the other.
