Glossary term
Iron Condor
A defined-risk neutral options strategy combining a put credit spread and a call credit spread on the same underlying and expiry.
An Iron Condor is a defined-risk, market-neutral options strategy that combines a put credit spread below the price and a call credit spread above it. The seller collects premium from both spreads and profits if the underlying stays within the range until expiration. Maximum loss is capped by the long wings, making it a controlled way to harvest theta on range-bound names. See Greeks 101.