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