A condor spread is a range-bound neutraloptionstrading 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.
It's a type of Condor Spread where risk/reward profile is skewed in favor of the trader by which no losses occur or a slight credit is taken even if the underlying security goes down substantially. The tradeoff is that if the underlying appreciates beyond the expected [click to read more]