Example of the Iron Condor Options Strategy

The iron condor is purely an options strategy that involves entering into four different options contracts simultaneously:
• Sell an out-of-the-money (OTM) call option (e.g., Oct 110 call).
• Buy a further OTM call option to cap potential losses on the upside (e.g., Oct 120 call).
• Sell an OTM put option (e.g., Oct 95 put).
• Buy a further OTM put option to cap potential losses on the downside (e.g., Oct 85 put).

Click on the buttons below to see these other options strategies:
Bull Call Spread   Bear Put Spread   Iron Condor   Butterfly Spread   Straddle