Iron Condor Max Loss Calculator

Calculate Maximum Loss





Formula

The formula to calculate the maximum loss (L) is:

\[ L = (S_L - S_S) - P \]

Where:

Example

Let's say the strike price of the long call is 50, the strike price of the short call is 45, and the net premium received is 2. Using the formula:

\[ L = (50 - 45) - 2 \]

We get:

\[ L = 3 \]

So, the maximum loss (\( L \)) is 3.