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
$50.18
Max profit
$50.18
Max loss
$949.82
Breakevens
64,750 / 67,050
Example legs (0.7 DTE front)
- Sell 67,000 call
- Buy 68,000 call
- Sell 64,800 put
- Buy 63,800 put
Entry greeks (per 1 BTC notional): Δ 0.006 · Γ -0.1944 per 1% · vega $-6.32/pt · theta $110.24/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.