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Iron Condor Strategy: When and How to Use It

๐Ÿ“š 14 min read๐Ÿ“Š IntermediateUpdated: January 2026

Build Your First Iron Condor

Visualize profit/loss, breakevens, and Greeks in real-time

What is an Iron Condor?

An Iron Condor is a neutral income strategy that profits when the underlying stock stays within a range. It's one of the most popular strategies for generating monthly income from options.

The Setup (4-Leg Strategy):

  • Sell 1 OTM Put (collect premium)
  • Buy 1 Further OTM Put (protection)
  • Sell 1 OTM Call (collect premium)
  • Buy 1 Further OTM Call (protection)

Result: You collect net premium upfront and profit if the stock stays between the two sold strikes.

Try Building Your First Iron Condor

Our visualizer shows real-time P/L, breakevens, Greeks, and risk metrics

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