Iron Condor

An Iron Condor is an options strategy where you simultaneously sell and buy call options (contracts giving the right to buy stock) and put options (contracts giving the right to sell stock) at different price levels. You're essentially betting that a stock will stay within a certain price range by expiration. This strategy is popular with experienced options traders because it can generate income from a stock that doesn't move much, while limiting your maximum loss upfront. For example, you might sell calls and puts on TechCorp at prices far above and below where it currently trades, then buy calls and puts even further out as insurance. It's called an "Iron Condor" because the profit diagram looks like a bird's shape.