
Iron Condor Strategy9 min
How Iron Condors Make Money: The Mechanics Explained
An iron condor makes money through three distinct mechanisms working simultaneously: theta decay (time working in the seller's favor), IV compression…
Bernardo Rocha

An iron condor makes money through three distinct mechanisms working simultaneously: theta decay (time working in the seller's favor), IV compression…

An iron condor is a four-legged defined-risk options position that profits when the underlying asset stays within a range between the two short strikes. It…

What Is Options Assignment? Options assignment occurs when a holder of an options contract exercises their right to buy or sell shares, and the seller of that…

A credit spread is a two-legged options strategy where you sell one option and buy another at a different strike price. The net result is a cash credit to your…