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Iron Condor

Options & Volatility

An iron condor is an options strategy consisting of two puts and two calls at four different strike prices but the same expiration. It generates a net credit and profits if the underlying stays within a defined range.

An iron condor bets that a stock won't move dramatically — you collect premium if it stays range-bound. Around earnings, selling an iron condor means betting the move will be smaller than the market expects.

Further reading: Wikipedia

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