20 Video Lessons
The iron condor is a neutral, risk defined option selling strategies that include the combined selling of a bull put spread and bear call spread for an overall net credit and profit from rangebound markets.
To build a iron condor, a trader would sell one call option while buying another call with a higher strike. Then, sell one put option while buying another put with a lower strike. Typically, the short call and put strikes are an equal distance from the current stock price and the distance between wings of each spread is the same as well. All the options must be of the same expiration.