Options Made Easy: Your Guide to Profitable Trading, Second Edition

Condors

Condors work in a similar way to Butterflies except that there is an extra middle leg involved, which therefore widens the spread and flattens out the top portion of the risk profile. The Condor involves the following steps (as with Butterflies, you can use all calls or all puts with the Condor—you cannot mix the two):

Condor with Calls

Step 1	Buy 1 lower strike (ITM) call	There are two key points here:
Step 2	Sell 1 lower middle strike (ITM) call	1	You trade the same number of contracts for each leg of the Condor.
Step 3	Sell 1 higher middle strike (OTM) call	2	The distance between the four adjacent strikes should be equal, with the stock price being somewhere between the two middle strike prices.[*]
Step 1	Buy 1 higher strike (OTM) call

^{[*] ...}