# Short Iron Condor

> Is the range you expect genuinely narrower than the move the market has priced in?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected |
| Driver | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility |
| Direction | neutral |
| Max profit | the credit received |
| Max loss | the greater of the width of the put wing and the width of the call wing minus the credit received |
| Risk defined | Yes |
| Legs | +1 Put @K1; -1 Put @K2; -1 Call @K3; +1 Call @K4 |
| Approval level | 3 (Defined-risk spreads) |
| Experience | Intermediate |

## Formulas

```text
Break-even: K2 - C / K3 + C
Max profit: C
Max loss: max(W_put, W_call) - C
```

## Legs

1. +1 Put @K1
2. -1 Put @K2
3. -1 Call @K3
4. +1 Call @K4

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/short-iron-condor)