Real Example (July 2025)
An iron condor involves selling a call spread and a put spread at different strike prices. It's a non-directional strategy that profits from time decay if the stock remains in a tight range.
- Stock: XYZ Corp
- Outlook: Neutral
- Setup: Sell $95 Put @ $2.00, Buy $90 Put @ $1.00, Sell $105 Call @ $2.00, Buy $110 Call @ $1.00
- Net Credit: $2.00 ($200 per contract)
- Max Gain: $200
- Max Loss: $300
- Breakeven: $93 and $107