Strategy concepts
Iron condor
By Prakash Dinde · Reviewed 30 August 2026 · General education
Structure
An iron condor typically combines a call credit spread and put credit spread with the same expiry. The result has defined wings, but real execution, margin and assignment treatment can differ by broker and market.
Key risks
The position may be affected by a sharp move, volatility changes, expiry behaviour, liquidity and the ability to adjust or exit. Defined risk does not mean low risk.
Before acting
Understand each leg, position size, maximum loss, event exposure, liquidity and your own exit plan. Paper results do not replicate all execution conditions.
Important risk note
This material is general education. Options can lose value quickly, and no concept or historical observation establishes an outcome for a future trade.