A four-leg options strategy that combines a bear call spread and a bull put spread to profit from low volatility.
An iron condor is a defined-risk, defined-reward options strategy built by simultaneously selling an out-of-the-money call spread and an out-of-the-money put spread on the same underlying and expiry. It profits when the underlying stays within a range between the short strikes through expiry, making it a popular strategy for range-bound markets. Because all four legs are defined, both the maximum profit and maximum loss are known upfront.
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