A COMPOUND OPTION STRATEGY designed to take advantage of VOLATILITY. Condors are created with the same ratio of PUT OPTIONS or CALL OPTIONS (i.e., one low STRIKE PRICE , one middle low strike, one middle high strike, one high strike) that expire at the same time. SHORT condors, similar to LONG STRANGLES without the extreme upside, consist of short low and high strike options and Long condor payoff profile long middle low and high strike options. Long condors, similar to short strangles without the extreme downside, consist of long low and high strike options and short middle low and high strike options. See also BUTTERFLY SPREAD .
Black’s Law Online Dictionary
