An iron condor is a type of options trading strategy that involves simultaneously buying a call option and a put option at different strike prices, while also selling a call option and a put option at different strike prices. The goal of this strategy is to profit from a neutral market, where the price of the underlying asset stays within a certain range.

The iron condor strategy involves four options:

• A call option is bought at a higher strike price (also known as the "upper call").

• A put option is bought at a lower strike price (also known as the "lower put").

• A call option is sold at a strike price lower than the upper call option (also known as the "short call").

• A put option is sold at a strike price higher than the lower put option (also known as the "short put").

The difference between the strike prices of the short options and the long options is known as the "spread." The spread forms a "range" in which the underlying security is expected to remain.

For example, if the underlying security is trading at $50, the investor may buy a $55 call option and a $45 put option while selling a $50 call option and a $52 put option. If the price of the underlying security remains between $45 and $52, the investor can collect the premium from the sale of the short options, which is the money received from the sale of the options.

However, if the price of the underlying security moves outside of the range, the investor may have to buy or sell shares at a loss.

In summary, an iron condor is a type of options trading strategy where an investor buys a call option and a put option at different strike prices, while also selling a call option and a put option at different strike prices. The goal of this strategy is to profit from a neutral market, where the price of the underlying asset stays within a certain range. This strategy has limited upside potential but also limited downside risk.