Iron Condor the use of two credit spreads

An iron condor is an option strategy that uses two credit spreads a bull put spread and a bear call spread. This type of strategy is more of a neutral position, because you place the trade above and below the actual stock/index price and your thought process is that the stock will not rise above your sold option of the bear call spread and will not go below the sold option of the Bull Put spread. It is a very cool strategy because you will always be correct on at least one of the positions.

If you want to learn more about how to use this very popular credit spread strategy you need to check out Condor Options I have found their blog and ideas very insightful and useful.

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