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Definition, Examples & Resources:Condor Spread'

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What is Condor Spread in Options Trading ?

Condor Spread
A condor spread is a range-bound neutral options trading strategy in which the trader takes advantage of time decay in the range-bound market. Traders use this strategy when they expect the price of an underlying to change minimally throughout its duration. The condor spread is a strategy with lesser risk, however, it also has the lowest maximum profit potential for traders. Condor spreads are debit spreads and should not be confused with iron condor spreads, which are credit spreads.

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