An advanced option strategy that is popular among traders who want consistent returns without spending too much time preparing and executing trades. It can deliver a high likelihood of return as a neutral position for those who have learned to execute it appropriately. Two credit spreads must be made in order to build an iron condor. A credit spread is formed by selling one option (put or call) and then buying another that is more out of the money. The profit is calculated as the difference between the premiums collected for the sold option and the cost of the purchased option. When the options expire, this profit is achieved by either purchasing back the position for a profit or keeping the entire premium.
