How an Iron Condor Combines Two Credit Spreads

An iron condor pairs a put credit spread with a call credit spread, resulting in a net credit and a range where the position can profit.

0:00 Introduction: Iron Condor Structure
0:18 Neutral Outlook Requirements
0:39 Selling Puts and Calls, Buying Wings
1:02 Maximum Profit: Net Credit Taken In
1:20 Maximum Loss: $5 Width - $3 Credit = $2
1:37 Break Even Calculation
2:19 Iron Condor as Short Strangle Protected

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