Glossary / Iron condor

Iron condor

A defined-risk income strategy that profits when the underlying stays in a range.

An iron condor is a defined-risk options income strategy that simultaneously sells an out-of-the-money call spread and put spread. It profits from time decay when the underlying stays within a range — which is exactly what dealer pinning tends to produce.

More terms: Gamma wall · Delta neutral · Gamma · 0DTE options · Dealer hedging · Call wall

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