
Combinations of Options: Trading Strategies 323
e iron condor strategy provides a constant gain of INR 5 for a share price in the range of INR 1,150
to INR 1,300, which are the high put exercise price and low call exercise price, respectively. For any stock
price below INR 1,145 or for any stock price above INR 1,305, the iron condor strategy will result in a
loss. However, the maximum loss is capped at INR 45, and this loss arises when the stock price is below
INR 1,100, which is the low exercise price of the put, and when the stock price is above INR 1,350, which
is the high exercise price of the call. e maximum gain from the contrac