The short iron condor options spread anticipates volatility to decrease and the underlying security to trade within a specific price range. The short iron condor option strategy involves buying a put option, selling a put option, selling a call option, and buying a call option, all at consecutively higher strike prices.

The short iron condor is a combination of a bull put spread and a bear call spread. Maximum profit is the difference between the premium received for the short put and short call minus the premium paid for the long put and long call (Net Credit). The maximum loss is the difference between the outer and next strike values, minus the Net Credit.

The short iron condor strategy succeeds if the underlying security is trading within the range between the downside breakeven (lower middle strike - Net Credit) and upside breakeven (upper middle strike + Net Credit) at expiration. Maximum profit is achieved if the underlying security is at or between the middle strike prices at expiration.