An Iron Condor allows traders to profit in a sideways market that exhibits low volatility.
It is executed by shorting a call and a put closer to the money, and going long a call & a put that are further out of the money; all at 4 different strike prices, but with the same expiration date.
Profit is capped at the premium received while the potential loss is restricted to the difference between the bought and sold call strikes or the bought and sold put strikes, less the net premium received.
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