Search Investopedia

Condor Spread

Filed Under » ,
Dictionary Says

Definition of 'Condor Spread'

Similar to a butterfly spread, a condor is an options strategy that also has a bear and a bull spread, except that the strike prices on the short call and short put are different.
Investopedia Says

Investopedia explains 'Condor Spread'

The purpose of this option strategy is to earn limited profits, regardless of market movements, with a small amount of risk.

Related Definitions

  •

    Bear Spread

    1. An option strategy seeking maximum profit when the price of the underlying security declines. The strategy involves the simultaneous purchase and sale of options; puts or calls can be ...
    Read More »

  • Bull Spread

    An option strategy in which maximum profit is attained if the underlying security rises in price. Either calls or puts can be used. The lower strike price is purchased and the higher ...
    Read More »

  • Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration but three different strike prices to create a range of ...
    Read More »

    • Short (or Short Position)

      1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.2. In the context of options, it is the sale (also known as "writing") of ...
      Read More »

    • Iron Condor

      An advanced options strategy that involves buying and holding four different options with different strike prices. The iron condor is constructed by holding a long and short position in ...
      Read More »

    • Debit Spread

      Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the ...
      Read More »

    • Modidor

      An options strategy that consists of buying and selling out-of-the-money calls and puts and is designed to lock in investor returns above or below a designated trading price. The modidor ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions