Iron condor

Also called Short iron condor

A bull put spread and a bear call spread on the same expiration, sold together for a credit that's kept if price stays between the short strikes.

An iron condor sells a bull put spread below the price and a bear call spread above it, on the same expiration. Four legs: long put, short put, short call, long call, from the lowest strike up.

• Max profit: both credits, if price finishes between the two short strikes.
• Max loss: the wider spread's width less the total credit, if price finishes past either long strike. Only one side can lose at expiration.
• Breakevens: the short put less the total credit, and the short call plus it.

It's a bet on a range. Many traders place the short strikes near the edges of the expected move, and in positive gamma the walls can serve as a guide to where hedging leans against a move.

In Theta Vantage

Pick Iron Condor from the strategy calculator's library and the shorts land on the expected move by default, or on a target delta or a Smart Range band. Drag a short strike and the other moves the same distance the other way; drag a wing and both widths change. The summary shows the credit, max loss, chance of profit, and both breakevens.