---
title: "Iron Condor — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Income"
outlook: "Neutral / range-bound"
complexity: "advanced"
risk: "defined"
slug: "iron-condor"
url: "https://learn-derivatives.tapetide.com/strategies/iron-condor"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/iron-condor.md"
source: "DeltaDesk by Tapetide"
---

# Iron Condor

> **In plain English:** The workhorse income trade. You sell a put spread below and a call spread above, getting paid if the price stays in a band. Both sides are protected, so your loss is capped — the safer cousin of a short strangle.

**Category:** Income · **Market view:** Neutral / range-bound · **Complexity:** advanced · **Risk:** Defined

## Structure

- Sell ATM-2 strikes put
- Buy ATM-5 strikes put
- Sell ATM+2 strikes call
- Buy ATM+5 strikes call

## Summary

Sell an OTM put spread and an OTM call spread — defined-risk, range-bound income.

## When to use it

Neutral, expecting the price to stay within a range, IV elevated. The defined-risk version of a short strangle.

## Profit & loss

- **Max profit:** Net credit received (price stays between the short strikes).
- **Max loss:** Limited to (wing width − net credit).

## Net Greeks profile

Positive theta, negative vega, near delta-neutral.

## Margin

Margin-intensive (you sell options).

## Common mistakes

- Wings too narrow for the credit collected.
- Holding through expiry when a short strike is breached.

## India example

Sell a 2/5-strike-wide NIFTY iron condor on a monthly with IV rank > 40%.

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**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*