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Options & Derivatives·Defined-Risk Strategies
The Iron Condor
9 min read
Profit from a stationary market
An iron condor is a four-leg, defined-risk options structure that profits when the underlying stays inside a chosen range until expiration. You sell one OTM call spread and one OTM put spread, collecting premium on both. Max profit is the net premium collected; max loss is the wider of the two spreads minus the premium.