# Iron Condor

*Derivatives & Options — Finicade finance glossary*

An iron condor sells an out-of-the-money call spread and put spread at once, profiting if the underlying stays inside a range until expiry. It's a bet on quiet markets with defined risk on both wings, funded by time decay. The structural catch is the payoff asymmetry: you win small amounts often and lose a multiple of the credit when price breaks out, so a single unhedged breakout can erase months of income.

**Also known as:** condor spread, short iron condor

**Related terms:** [Vertical Spread](https://finicade.com/glossary/vertical-spread), [Straddle](https://finicade.com/glossary/straddle), [Implied Volatility](https://finicade.com/glossary/implied-volatility), [Theta](https://finicade.com/glossary/theta), [Option Strategies](https://finicade.com/glossary/option-strategies)

Source: https://finicade.com/glossary/iron-condor