Long Condor

Decent profits if the price changes slightly

The Long Condor is a strategy that helps you to make a bet on low volatility: that the price of an asset won’t rise or fall significantly in either direction during the period of holding.

Instead of being bullish or bearish about the future price, you can have the following reasoning when buying it: “I don’t care what the price will be, but if it won’t change significantly from current levels in either direction during the period of holding the Long Condor, I win.”

The Long Condor is an optimal strategy when the price is moving within the ~10% range. The profit zone for this strategy is the opposite of a Strangle: you make profits when the price moves within the 10% range, you lose money if the price moves up or down from the 10% range.

Buying one Long Condor is equal to selling 10% OTM Call and 10% OTM Put and buying 20% OTM Call and 20% OTM Put (also 30% OTM Call + 30% OTM Put combo is available).

Long Condor is an inversion strategy. This means that the strategy includes selling (writing) of options, so they can't be exercised before expiry.