An iron condor combines an out-of-the-money bull put spread and bear call spread on one expiration, collecting both credits. It profits when the stock finishes between the short strikes; max loss is the wider wing's width minus the total credit.
An iron condor is two credit spreads on the same expiration: a bull put spread below the stock and a bear call spread above it. It is the defined-risk version of a short strangle, built to profit if the stock stays inside a range.
A $100 stock with 30 days to expiration and a flat 30% implied volatility (model prices; real chains usually price the put side richer):
Only one side can lose at expiration, so the worst case is set by the wider wing alone. Under the same model, the stock finishes between the breakevens about 58 percent of the time and between the short strikes about 44 percent.
The condor has no directional opinion, so everything rests on entry conditions: the volatility being sold has to be rich relative to realized movement, both wings have to be liquid enough to exit, and no scheduled event should fall inside the expiration. Those checks, and the expectations set by the CBOE condor benchmark's flat decade, are in iron condor entry screening. How a condor is selected in the app is in the iron condor screener, and what traders do when the stock reaches one short strike is in managing a tested iron condor.
Take the width of the wider wing, subtract the total credit, and multiply by 100 per contract. A condor with $5 wings opened for a $1.93 total credit can lose at most $307 per contract.
The lower breakeven is the short put strike minus the total credit and the upper breakeven is the short call strike plus the total credit. With short strikes at 95 and 105 and a $1.93 credit, they are $93.07 and $106.93.
Not at expiration, because the stock can only finish below the put side or above the call side, not both. That is why the maximum loss is set by the wider wing alone.