option's expiration the price of the stock or index is greater than the short put strike price of $100, then the return generated for this position is: ABC Bull Put Credit Spread Return = (1 - 0.5)/[100-90-(1-0.5)] = 5.26%. Bear call credit spread return The Bear Call Credit Spread (see bear spread) is a bearish strategy and consists of selling a call option and purchasing a call option for the same stock or index at differing strike prices for the same expiration. The purchased call option is entered at a strike price higher than the strike price of the sold call option. The return calculation for the Bear Call Credit Spread position assuming price of the stock or index at expiration is less than the sold call is shown below: Bear Call Credit Spread Potential Return = (sold call price - purchased call price)/(purchased call strike price - sold call strike price - initial credit) For example, suppose a call option with a strike price of $100 for DEF stock is sold at $1.00 and a call option for DEF with a strike price of $110 is purchased for $0.50, and at the option's expiration the price of the stock or index is less than the short call strike price of $100, then the return generated for this position is: DEF Bear Call Credit Spread Return = (1 - 0.5)/[110-100-(1-0.5)] = 5.26%. Iron condor return The iron condor is a neutral strategy and consists of a combination of a bull put credit spread and a bear call credit spread (see above). Ideally, the margin for the Iron Condor is the maximum of the bull put and bear call spreads, but some brokers require a cumulative margin for the bull put and the bear call. The return calculation for the Iron Condor position using the maximum margin of the bull put credit spread and the bear call credit spread and assuming price of the stock or index at expiration is greater than the sold put option and less than the sold call option is shown below: Iron Condor Potential Return = (bull put net credit + bear call net credit)/{max[(purchased call strike price - sold call strike price), (sold put strike price - purchased put strike price)] - initial credits} For example, for the bear put portion of the iron condor a put option with a strike price of $90 for