Short Iron Condor
Definition
A credit strategy that sells two vertical spreads — a bear call spread and a bull put spread — to profit from price staying within a defined range. Collects net premium; maximum profit is the total credit received.
Example
Short iron condors are popular for range-bound, low-volatility markets where the underlying is expected to stay inside the tent.
Related Terms
Frequently Asked Question
What is a Short Iron Condor?
A Short Iron Condor collects premium by selling a bear call spread and bull put spread simultaneously. It profits when the underlying stays within the defined range between expiration.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.