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 the expiration date. This strategy is popular with experienced options traders because it can generate income while limiting risk—you profit if the stock doesn't move too far in either direction. For example, you might sell calls and puts at prices you think the stock won't reach, while buying calls and puts further out as insurance. It's called an "Iron Condor" because the profit diagram resembles a bird's wings.