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.

BREAKING DOWN 'Condor Spread'

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

  1. Buy A Spread

    Option strategy that will be profitable if the underlying security ...
  2. Bull Spread

    A bull spread a bullish options strategy using either two puts ...
  3. Long Leg

    The part of an option spread strategy that involves buying an ...
  4. Bear Put Spread

    A bear put spread is a bearish options strategy used to profit ...
  5. Short Leg

    Any contract in an option spread in which an individual holds ...
  6. Bear Call Spread

    A bear call spread is a bearish options strategy used to profit ...
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