Short Iron Condor
Options strategy · Level 3 · Spreads & short options
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A short put spread plus a short call spread. You collect premium and win if the stock stays between the short strikes.
Where Tradecraft teaches it
Level 3 · Spreads & short options, in the lesson “Probability vs payoff, condors & managing trades”: Breakeven win rate, delta as odds, the short iron condor, and when to take profits or cut losses.
Related terms
- Short PutSell a put and collect the premium. You are paid to promise to buy 100 shares at the strike if the stock falls below it.
- Breakeven win rateHow often a trade must win just to net zero, treating each outcome as a full win or a full loss: max loss ÷ (max profit + max loss), i.e. 1 ÷ (1 +…
- Credit-to-width ratioPremium collected on a vertical divided by the distance between its strikes; a popular rule of thumb asks for at least about one-third.
- Delta as a probabilityRule of thumb: an option’s delta, ignoring the sign, roughly equals the market-implied chance it finishes in the money.
- DTEDays to expiration: calendar days left before an option expires.
- Iron condor (desk usage)Unqualified, traders mean the credit version: sell an OTM put spread and an OTM call spread on one expiry.