Economics Options And Futures Questions
The concept of a condor spread in options trading refers to a complex options strategy that involves the simultaneous buying and selling of four different options contracts with the same expiration date but different strike prices. It is a neutral strategy used by traders to profit from a range-bound market, where they expect the underlying asset's price to remain within a specific range. The condor spread involves buying a lower strike price put option, selling a higher strike price put option, selling a higher strike price call option, and buying a higher strike price call option. This strategy allows traders to benefit from limited risk and limited profit potential, as long as the underlying asset's price remains within the range defined by the strike prices of the options contracts.