Long Iron Condors
A long iron condor is a multiple leg strategy that combines a bear put debit spread and a bull call debit spread where all strikes are equidistant and have the same expiration. This position results in a net debit and max profit is realized if the underlying stock settles below the lower short put or above the higher short call at expiration. Max risk is realized if the underlying settles at or between the two inside long call and put options. This strategy has both limited profit and limited risk potential.
Fri, Oct 23rd, 2020