Iron Condor
Outlook: Neutral
Butterflies and condors
Bull put spread + bear call spread. Defined-risk neutral premium selling. The named product.
Max profit
Credit collected. Reached if underlying ends between the two short strikes.
Max loss
(Wing width) - credit.
Breakeven
Short put strike - credit, and short call strike + credit.
Legs
Long
1×
put
ATM −15
Short
1×
put
ATM −10
Short
1×
call
ATM +10
Long
1×
call
ATM +15
Structure
Long OTM put + short closer OTM put + short OTM call + long further OTM call. Equal wing widths.
When to use
IV rank above 30, neutral view, defined-risk income. The canonical product of this app.
Example
SPY at $450 30 DTE. Short 440 put / long 435 put + short 460 call / long 465 call. Total credit $3. Max profit $3 in the $440-$460 zone; max loss $2 outside.
Notes
- Take profit at 50% of credit. Close or roll at 21 DTE before gamma dominates theta.
Build it in the simulator
Open this structure in the app, adjust spot, IV, and DTE, and watch the payoff and Greeks move.
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