Skip to main content

Investing

Home / Investing / What is Bear Condor?

Investing

What is Bear Condor?

The Bear Condor Spread is available as a predefined strategy in the Firstock terminal. It can be deployed in just a few clicks, without the need to manually enter each leg.

🔹 Step-by-Step Deployment

  1. Login to Firstock
    • Open the Firstock web or mobile app and log in with your credentials.
  2. Open Option Chain / Strategy Watchlist
    • Navigate to the Strategy Watchlist or directly open the Option Chain.
  3. Select Predefined Strategy
    • From the predefined list, choose “Bear Condor.”
  4. Click on Build
    • For Nifty, the system automatically selects:
      • ATM – 250 Put → Buy
      • ATM – 500 Put → Sell
      • ATM – 800 Put → Sell
      • ATM – 1050 Put → Buy
  5. Save & Deploy
    • Review the strike prices, net debit, and margin requirements.
    • Click Save and Deploy to execute the strategy.

🔹 What You Get After Deployment

Once deployed, Firstock instantly provides:

  • Payoff Chart (showing profit/loss at expiry)
  • Option Greeks (Delta, Gamma, Theta, Vega)
  • Breakeven Points (upper and lower)
  • Probability of Profit (POP)

✅ Tip: The Bear Condor works best when you expect low volatility with a slight bearish bias. It creates a wider profit zone than a Bear Butterfly, but with slightly lower max profit.

How to Deploy a Bear Condor in Firstock (Step-by-Step)

The Bear Condor (with Puts) is available as a predefined multi-leg strategy in Firstock. Below is a detailed, action-oriented deployment flow so even a first-time user can build, review and execute the strategy safely.

🔹 Step-by-Step Deployment

  1. Login to Firstock
    • Open the Firstock web or mobile app and sign in with your credentials (ID / password / OTP).
  2. Open Option Chain / Strategy Watchlist
    • From the dashboard, go to Watchlists → Strategy Watchlist or open the Option Chain for the underlying (e.g., Nifty).
  3. Select Predefined Strategy
    • From the predefined strategy list choose “Bear Condor.”
  4. Click on Build
    • Click Build to auto-populate the legs. For Nifty the system will typically select:
      • ATM − 250 Put → Buy
      • ATM − 500 Put → Sell
      • ATM − 800 Put → Sell
      • ATM − 1050 Put → Buy
  5. Customize strikes / expiry / lot size (optional)
    • Edit any leg if you want different strikes or change the expiry series.
    • Adjust lot size / quantity if you want a smaller or larger position.
    • Note: changing strikes or expiry will update net debit/credit and margin instantly.
  6. Review Analytics
    • Carefully review:
      • Net Premium / Net Debit (cost you pay)
      • Margin Required (funds that will be blocked)
      • Payoff Chart (P&L across price levels at expiry)
      • Breakeven Points (lower & upper)
      • Max Profit & Max Loss
      • Probability of Profit (POP)
      • Option Greeks (Delta, Gamma, Theta, Vega)
    • Use the What-If panel to: change underlying price or days-to-expiry and verify outcome.
  7. Save Strategy (optional)
    • Click Save to keep this configuration in your Strategy Watchlist for reuse.
  8. Deploy (Place Order)
    • Click Save & Deploy (or Deploy) to place the multi-leg order.
    • Confirm the order pop-up showing: strikes, net debit, lot size, and margin blocked.
    • Click Confirm to send the order to the market.
  9. Verify Order Execution
    • Open Orders / Order Book → check status for the strategy: Pending → Partially Filled → Executed.
    • If legs are executed as separate leg orders, confirm all four legs are filled (or note partial fills).
    • If partial fills occur, decide whether to cancel remaining legs or wait.

🔹 What You Get Immediately After Deployment

  • Payoff Chart (updated for actual fills)
  • Option Greeks (Delta, Gamma, Theta, Vega)
  • Breakeven Points (lower & upper)
  • Probability of Profit (POP)
  • Positions tab showing the live strategy position (net qty, avg price, MTM P&L)

🔹 How to Monitor & Exit the Strategy

  • Monitor:
    • Go to Positions → Strategies / Options Positions to track real-time P&L and Greeks.
    • Watch MTM regularly and check margin utilization in Funds/Trade Book → Home.
  • Exit / Close Entire Strategy:
    • In Positions, select the Bear Condor strategy row and click Close Strategy / Close All Legs so the terminal places the opposite multi-leg order to unwind all legs in one action.
    • Or use Strategy Watchlist → Saved Strategy → Close (if platform supports single-click close).
  • Exit / Close Individual Legs:
    • You can close specific legs manually (e.g., close one short put) — useful for partial adjustments, but be mindful of changing risk profile.
  • Amend / Roll:
    • To roll strikes or expiry, close current strategy and deploy a new (rolled) Bear Condor; or edit and re-save then deploy if Firstock supports in-place amendment.
  • Check Order Book:
    • After clicking Close, verify legs are filled in Order Book and check Positions to ensure net exposure is zero.

✅ Tip: Start with a small lot for your first few Bear Condors to see how fills and margin behave on Firstock. Always review the payoff chart, breakevens and POP right before confirming the deploy.

Firstock Footer