Bull Condor Strategy
Bullish with a wide target range — like a bull butterfly but more forgiving.
What is the Bull Condor Options Strategy?
A Bull Condor is an asymmetric long call condor shifted above the current price. Instead of needing the stock to pin at one exact price (like a butterfly), you get a wide flat profit zone between two middle strikes.
If the stock rallies into your target range, you profit. You don't need to be exact — just in the neighbourhood. It costs slightly more than a bull butterfly but the wider profit zone compensates.
Why is it Called "Bull Condor"?
"Bull" because the profit zone is above the current price. "Condor" because the payoff has the flat-topped wingspan shape. Think of it as a butterfly with a wider body — the flat top is where you profit.
How Does the Bull Condor Trade Work?
- 1 Step 1 — Identify a bullish target RANGE (not a single price).
- 2 Step 2 — Choose two middle strikes that define your target range.
- 3 Step 3 — Buy one call below the range. Buy one call above the range.
- 4 Step 4 — Sell one call at each middle strike.
- 5 Step 5 — If stock rallies into the range, collect max profit.
Types of Bull Condor Strategies
Bull Call Condor
Four calls: buy lowest, sell two middle strikes (body), buy highest. Profit zone between the two middle strikes.
When to Use the Bull Condor Strategy?
- When you expect a rally but aren't sure of the exact price
- When a bull butterfly feels too precise
- On monthly expiry with a support/resistance zone as target
- When you want cheap, defined-risk directional exposure
Profit and Loss of the Bull Condor
Before looking at the chart, here is a plain-English summary of what you can make and what you can lose.
Lower wing width minus net debit. Flat profit zone between the two middle strikes.
Net debit paid.
Lower: lowest strike + debit. Upper: highest strike − debit.
Bull Condor Payoff Diagram
The chart below shows how profit/loss changes with the underlying price at expiry. Green zone = profit, red zone = loss.
Bull Condor Example Trade
| Action | Type | Strike | Premium |
|---|---|---|---|
| Buy | Call | ₹22,250 | -₹180 |
| Sell | Call | ₹22,500 | +₹100 |
| Sell | Call | ₹23,000 | +₹30 |
| Buy | Call | ₹23,250 | -₹15 |
NIFTY rallied to ₹22,700 — inside the profit zone. Spread worth ₹185. Profit: ₹120 on ₹65 = 185% return.
Pros & Cons of the Bull Condor
- Wider profit zone than a butterfly
- Very cheap entry
- Fully defined risk
- Good for "I think it goes higher but I'm not exactly sure where"
- Four legs = more complexity and fees
- Max profit is lower than butterfly
- Still needs the stock to reach your target zone
- Less liquid strikes can have wide bid-ask spreads
Bull Condor Frequently Asked Questions
Quick Quiz
Answer all questions and check your score.
1 A Bull Condor is like a Bull Butterfly but with:
2 A Bull Condor has how many legs?
3 Bull Condor maximum profit is:
4 Bull Condor is a better choice than Bull Butterfly when:
5 Bull Condor profits best when: