Bear Condor Strategy
Bearish with a wide target range — cheap, defined risk, and forgiving.
What is the Bear Condor Options Strategy?
A Bear Condor is the bearish mirror of a Bull Condor. It is a long put condor shifted below the current price. You get a wide flat profit zone between two middle strikes below spot.
If the stock drops into your target range, you profit. You don't need an exact price — just the right neighbourhood.
Why is it Called "Bear Condor"?
"Bear" = profit zone below the current price. "Condor" = flat-topped payoff shape. The body of the condor is placed at your bearish target zone.
How Does the Bear Condor Trade Work?
- 1 Step 1 — Identify a bearish target range (support zone).
- 2 Step 2 — Choose two middle strikes defining your target range.
- 3 Step 3 — Buy one put above the range. Buy one put below.
- 4 Step 4 — Sell one put at each middle strike.
- 5 Step 5 — If stock drops into the range, collect max profit.
Types of Bear Condor Strategies
Bear Put Condor
Four puts: buy highest, sell two middle (body), buy lowest. Profit zone between the middle strikes.
When to Use the Bear Condor Strategy?
- Moderately bearish with a target support zone
- When a bear put spread feels like it's capping your profit too tight
- On monthly expiry with clear downside levels
- When you want cheap bearish exposure with defined risk
Profit and Loss of the Bear Condor
Before looking at the chart, here is a plain-English summary of what you can make and what you can lose.
Upper wing width minus net debit. Flat profit between middle strikes.
Net debit paid.
Lower: lowest strike + debit. Upper: highest strike − debit.
Bear Condor Payoff Diagram
The chart below shows how profit/loss changes with the underlying price at expiry. Green zone = profit, red zone = loss.
Bear Condor Example Trade
| Action | Type | Strike | Premium |
|---|---|---|---|
| Buy | Put | ₹47,000 | -₹220 |
| Sell | Put | ₹46,500 | +₹140 |
| Sell | Put | ₹46,000 | +₹80 |
| Buy | Put | ₹45,500 | -₹40 |
BANKNIFTY dropped to ₹46,200. Inside the zone. Spread worth ₹460. Profit: ₹420 on ₹40 = 1,050% return.
Pros & Cons of the Bear Condor
- Very cheap entry
- Wide profit zone
- Fully defined risk
- Great risk/reward if you're right about the target zone
- Four legs
- Needs the stock to actually reach your zone
- Less profit than a bear butterfly at exact price
- Complex to set up
Bear Condor Frequently Asked Questions
Quick Quiz
Answer all questions and check your score.
1 Bear Condor profits when:
2 Bear Condor outlook is:
3 Maximum loss on a Bear Condor is:
4 Bear Condor vs Long Put — Bear Condor:
5 The profit zone on a Bear Condor is: