How Iron Condors Can Be Used To Generate Income

Name: How Iron Condors Can Be Used To Generate Income
Channel: TheOCC
Description: Capture premium with an iron condor strategy. Sell call and put spreads at the same expiration. Goal: out-of-the-money options expire worthless.

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If you think a stock is going trade in a relatively narrow range, an iron condor can be a strategy to capture premium. An iron condor spread works by selling one call spread and one put spread at the same expiration date. The goal of an iron condor is for the out of the money calls and puts to expire worthless.