Iron condor
Neutral / rangeLimited profitLimited loss
Short strangle with bought wings: the classic defined-risk range trade.
Payoff at expiry — live BTC example
Net credit
$388.43
Max profit
$388.43
Max loss
$1,012
Breakevens
75,212 / 78,788
Example legs (0.9 DTE front)
- Sell 78,400 call
- Buy 79,600 call
- Sell 75,600 put
- Buy 74,200 put
Entry greeks (per 1 BTC notional): Δ 0.036 · Γ -0.0975 per 1% · vega $-9.37/pt · theta $254.16/day
How it works
Short OTM strangle plus further OTM long wings: keep the credit in the range, max loss capped at wing width minus credit.
When to use it
The default defined-risk income structure: range-bound thesis, elevated IV, strikes beyond the expected move.
Risks & management
Width-minus-credit losses are typically several times the credit. One breached wing per handful of trades erases the edge if entries are careless.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.