Iron Condor

An Iron Condor is an options trading strategy that involves four options contracts to generate income with limited risk. It combines selling a lower strike point call and put while buying further out-of-the-money call and put options for protection. This creates a range where the trader profits if the underlying asset’s price remains stable, as all options expire worthless, allowing them to keep the premiums received. The strategy is best used when expectin minimal price movement, balancing potential profit against defined risks and rewards.