Iron Condor

An Iron Condor is a neutral, range-bound options strategy constructed by simultaneously selling an out-of-the-money (OTM) call and an OTM put while buying a further OTM call and a further OTM put as protection—creating a net credit position across four legs. The strategy profits when the underlying asset stays within a defined price range until expiry, allowing all four options to expire worthless and the trader to retain the net premium collected. Maximum profit equals the net premium received; maximum loss is capped by the width of the spreads minus the premium. Iron Condors are widely used on Nifty and Bank Nifty weekly options by traders expecting low volatility in a sideways market.