Iron Condor

An Iron Condor is a neutral, low volatility strategy constructed from a long in-the-money call (red), a short at or near the money put (green), a short at or near the money call (blue), and a long out-of-the-money put (yellow). An Iron Butterfly it is a generalization of an Iron Butterfly, where the strikes in the butterfly’s central short straddle have been pulled apart to form the Iron Condor’s central short strangle.