Iron Condor

An Iron Condor is an options strategy where you simultaneously sell and buy four different option contracts on the same stock, all expiring on the same date. You're essentially betting that a stock will stay within a certain price range. Here's why it matters: it's popular with experienced options traders because it can generate income with limited risk—you profit if the stock doesn't move too far in either direction. The "condor" name comes from the shape of the profit diagram. For example, you might sell a call option (the right to buy) at $105 and buy one at $110, while selling a put option (the right to sell) at $95 and buying one at $90. If the stock stays between $95 and $105, you keep the money you collected.