Iron Condors
A defined risk range strategy that sells both sides and aims to profit from time decay and stable price action.
What an iron condor is
An iron condor is two spreads at the same time. You sell a put spread and you sell a call spread. The goal is to profit if price stays in a range.
What environment it likes
Iron condors prefer stable markets. You want slow movement and no surprise events. High implied volatility can help, but only if it collapses after entry.
How risk is controlled
The long options in each spread cap losses. That is the core benefit. The hard part is choosing strikes and sizing positions so a range break does not damage your account.
Common failure modes
Big moves and volatility expansion are the main threats. Another threat is over adjusting. You can turn a defined plan into chaos by reacting too much.
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