Economics Options And Futures Questions
The condor spread strategy in options trading is a neutral strategy that involves the simultaneous buying and selling of four different options contracts with different strike prices. It is constructed by combining a bull put spread and a bear call spread. The condor spread strategy aims to profit from a limited range of price movement in the underlying asset. It is typically used when the trader expects the price of the underlying asset to remain within a specific range, resulting in a maximum profit if the price stays within the range at expiration.