What is a long iron condor?

A long iron condor strategy combines the purchase of a call option spread and a put option spread, employing identical expiration dates but different strike prices. Traders utilise this neutral strategy when they anticipate the underlying asset's price to stay within a specific range, characterized by minimal volatility, until the options reach expiration.With a long iron condor, traders seek to benefit from a stable market environment where the asset's price remains relatively stagnant within a predicted range. This strategy's potential for profit occurs when the underlying asset price doesn't move much and stays within the range defined by the selected strike prices. However, if the price moves significantly beyond the range, it can lead to losses.This strategy requires precise predictions about the market's stability and limited price movement. Traders typically employ it when they anticipate minimal fluctuations or expect the asset price to trade sideways within a specified range over the options' duration. The goal is to capitalise on the passage of time and reduced volatility in the underlying asset's price for potential profits.To find out what is a short iron condor click here. What is a short iron condor?