What is an iron condor in options?
An iron condor is a neutral options strategy that combines a short call spread and a short put spread on the same underlying, same expiration. It collects premium upfront and profits if the underlying stays within a defined range. Maximum profit equals the credit received; maximum loss equals the spread width minus the credit.
More detail
Iron condors work best when implied volatility is elevated (rich premium) and you expect range-bound price action.
Standard iron condors use 16-delta short strikes (roughly 1 standard deviation OTM) for a balance of premium and probability.
Iron condors lose money if the underlying breaks out beyond either short strike — especially with vol expansion.