Economics Options And Futures Questions
The iron condor spread strategy is an options trading strategy that involves the simultaneous buying and selling of both call and put options with different strike prices. It is a neutral strategy used when the trader expects the underlying asset to have limited volatility within a specific range. The strategy aims to generate income through the premiums received from selling the options while limiting potential losses through the purchase of options at wider strike prices. The profit potential is limited to the net premium received, while the risk is limited to the difference between the strike prices minus the net premium received.