Iron Condor

### What is an Iron Condor? If I had to pick one strategy that defines "selling premium for a living," this would be near the top. An Iron Condor is four legs, but conceptually it's just two credit spreads stitched together — a Bear Call Spread above the market and a Bull Put Spread below it. As long as the stock stays inside your two short strikes through expiry, you keep the entire credit. I treat this as a high-probability, small-reward trade. You're not trying to predict direction — you're betting the stock *won't* make a big move, and getting paid for that view. ### Strategy Setup 1. **Sell 1 OTM Put** (Lower Short Strike) 2. **Buy 1 further OTM Put** (Wing Protection) 3. **Sell 1 OTM Call** (Upper Short Strike) 4. **Buy 1 further OTM Call** (Wing Protection) ### Payoff Profile - **Max Profit**: Net Credit Received - **Max Loss**: $\text{Spread Width} - \text{Net Credit}$ - **Breakevens**: - Lower: $\text{Short Put Strike} - \text{Net Credit}$ - Upper: $\text{Short Call Strike} + \text{Net Credit}$