Iron Condor
An iron condor is similar to a condor, but with a mix of both calls and puts.
Essentially, the condor and iron condor are synthetically the same.
Short Iron Condor
Long one put with strike A; short one put with a higher strike, B; short one
call with an even higher strike, C; and long one call with a still higher
strike, D. The options are on the same security and in the same expiration
cycle. The put credit spread has the same distance between the strike prices
as the call credit spread.
Short Iron Condor Example
Buy 1 XYZ November 70 put (A)
Sell 1 XYZ November 75 put (B)
Sell 1 XYZ November 90 call (C)
Buy 1 XYZ November 95 call (D)
Long Iron Condor
Short one put with strike A; long one put with a higher strike, B; long one
call with an even higher strike, C; and short one call with a still higher
strike, D. The options are on the same security and in the same expiration
cycle. The put debit spread (strikes A and B) has the same distance between
the strike prices as the call debit spread (strikes C and D).
Long Iron Condor Example
Sell 1 XYZ November 70 put (A)
Buy 1 XYZ November 75 put (B)
Buy 1 XYZ November 90 call (C)
Sell 1 XYZ November 95 call (D)