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

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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 1Buy 1 lower strike (ITM) callThere are two key points here:
Step 2Sell 1 lower middle strike (ITM) call1You trade the same number of contracts for each leg of the Condor.
Step 3Sell 1 higher middle strike (OTM) call2The distance between the four adjacent strikes should be equal, with the stock price being somewhere between the two middle strike prices.[*]
Step 1Buy 1 higher strike (OTM) call  

[*] ...

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