Condor
A four-strike options strategy that profits when the underlying stays within a defined range.
Explanation
Similar to a butterfly but with a wider profit zone. A long condor uses four different strikes: buy the lowest, sell the two middle strikes, and buy the highest. The iron condor variant combines a bull put spread and a bear call spread and is one of the most popular income strategies.
Example
Sell the 95/90 put spread and the 105/110 call spread on SPY for a total credit of $1.50. Max profit is $1.50 if SPY stays between $95 and $105 at expiration.