Iron Condor

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Iron Condor.

A trading strategy attempting to profit from the low volatility of an underlying asset.  An iron condor options strategy consists of two puts (a long and a short) and two calls (also a long and a short) along with four strike prices, all with the same expiration date.  This strategy earns the maximum profit when the asset closes between the middle strike prices at expiration.  Similar to the Iron Butterfly strategy, loss is capped at the difference between the bought and sold call strikes and bought and sold put strikes (but profit is also capped at the premium received).