Bimodal Peak Condor Spread

The Bimodal Peak Condor Spread is an options trading strategy that combines the principles of both the Bullish Condor Spread and the Bearish Condor Spread.

• This strategy is structured to benefit from price movements towards two different levels – creating two potential peaks for profit.
• It is suitable for a market that may experience movement to either side but within a defined range.

Setup of the Bimodal Peak Condor Spread

Bullish Condor Spread  + Bearish Condor Spread

Various Nomenclatures:

As the trading community often creates unique names for complex and innovative strategies, various forums and groups might affectionately term these unconventional strategies in different ways.

• For instance, at Unofficed, this particular strategy is referred to as the Bactrian Camel Spread, drawing an analogy to the Bactrian camel, which is distinguished by its two prominent humps.
• Others might whimsically name it the Fat Batman due to the resemblance of the payoff graph to the iconic silhouette of Batman with a wider midsection.
• It’s also commonly known as the Double Plateau Spread, highlighting the two levels at which the strategy can achieve maximum profitability.

While traders are free to coin their terms for such strategies, the key is to focus on understanding the underlying payoff structure, as that is what ultimately determines the strategy’s potential success.

Whether it’s called a Bactrian Camel, Fat Batman, or Double Plateau Spread, the essence of the strategy remains in its distinctive twin-peak profit potential.

Live Example

Let’s understand with an example –

Bullish Condor Spread

• Buy BANKNIFTY 45800CE at 61.95 – 1 Lot
• Sell BANKNIFTY 46300CE at 11.5 – 1 Lot
• Sell BANKNIFTY 46800CE at 4.15 – 1 Lot
• Buy BANKNIFTY 47300CE at 2.45 – 1 Lot

Bearish Condor Spread

• Buy BANKNIFTY 44900PE at 95.05 – 1 Lot
• Sell BANKNIFTY 44400PE at 25.35 – 1 Lot
• Sell BANKNIFTY 43900PE at 7.2 – 1 Lot
• Buy BANKNIFTY 43400PE at 3.5 – 1 Lot

Combining them –

• Buy BANKNIFTY 45800CE at 61.95 – 1 Lot
• Sell BANKNIFTY 46300CE at 11.5 – 1 Lot
• Sell BANKNIFTY 46800CE at 4.15 – 1 Lot
• Buy BANKNIFTY 47300CE at 2.45 – 1 Lot
• Buy BANKNIFTY 44900PE at 95.05 – 1 Lot
• Sell BANKNIFTY 44400PE at 25.35 – 1 Lot
• Sell BANKNIFTY 43900PE at 7.2 – 1 Lot
• Buy BANKNIFTY 43400PE at 3.5 – 1 Lot

The payoff looks like –

It is the flathead version of Batman Spread.