Iron Condor
A four-leg strategy that combines a bull put spread and a bear call spread to profit from low volatility.
Explanation
The iron condor collects premium by selling OTM put and call spreads. It profits when the underlying stays between the two short strikes. Maximum profit is the net credit; maximum loss is the wider spread width minus the credit. It is one of the most popular premium-selling strategies due to its high probability of profit.
Example
Sell the 140/135 put spread and the 160/165 call spread on AAPL for $2.00 credit. Max profit is $2.00 if AAPL stays between $140 and $160 at expiration.