Iron Condor

An Iron Condor is an advanced four‑leg options strategy that combines a bull put spread (selling a put and buying a lower‑strike put) with a bear call spread (selling a call and buying a higher‑strike call). The resulting position has defined risk and reward, profiting when the underlying asset’s price stays between the two inner strikes until expiration, benefiting from low volatility and time decay.

Traders use the Iron Condor to collect a net credit while limiting potential losses; maximum profit equals the credit received, and maximum loss is the difference between the strikes of either spread minus that credit. For example, on a stock at $100, selling a 95‑put/90‑put spread and a 105‑call/110‑call spread might yield a $2 credit. If the stock remains between $95 and $105 at expiry, the full credit larger