What is an Iron Condor?
An Iron Condor is a low volatility trade where there is a higher probability of collecting a small profit is a price is perceived to trade near the same level at the options expiration date. What does that mean? If you are looking at a chart of Apple for example and you think it will remain at the same price for the next two weeks, you can trade an Iron Condor with the expiration two weeks out and find a probability that you will make a profit.
How do I place an Iron Condor trade?
The Iron Condor strategy consists of two spreads set wide apart around the current trading price of the underlying. For example, if you are looking at TSLA and say it is trading at $300, and you expect it to stay around this price for the next couple of days to few weeks, you could place an iron condor trade here to take advantage of this low volatility situation. You would place a spread above the price say between 310 and 315 and one below at say 290 to 285. This will give you a high probability of closing this trade out for a profit in the event that the price remains in the same area towards expiration.