Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Iron Condor An iron condor is a four-legged options strategy made up of both calls and puts with four different strike prices, It carries a 1:1:1:1 ratio? e.g. if the first leg has 10 contracts, all the others must also have 10. The options in an iron condor must all be on the same underlying asset. This strategy has limited up and downside. There are two types of iron condors: Long Iron Condor – An example of a long iron condor would be: Long one $100 put, short one $105 put, short one $110 call, and long one $115 call. Generally used by traders who feel the underlying will move in a narrow range. Results in a net credit to the trader. Short Iron Condor – An example of a short iron condor would be: Short one $100 put, long one $105 put, long one $110 call, and short one $115 call. Generally used by traders who feel the underlying will move significantly. Results in a net debit to the trader. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.