An options strategy similar to a butterfly spread. The only difference is that...
A strategy similar to the butterfly involving 4 contracts of the same type at four different strike prices. A long (short) condor involves buying (selling) the lowest strike price, selling (buying) 2 different central strike prices, and buying (selling) the highest strike price. All contracts are on the same underlying, in the same expiration. This strategy is not an available choice in the Trade Finder, but can be constructed and analysed in the Matrix.
Applies to derivative products. Option strategy consisting of both puts and calls at different strike prices to capitalize on a narrow range of volatility. The payoff diagram takes the shape of a bird.
Referring to the sale (purchase) of two options with consecutive exercise prices, together with the purchase (sale) of one option with an immediately lower exercise price and one option with an immediately higher exercise price. All options must be of the same type, have the same underlying, and expire at the same time. (See also Butterfly).
Is an option spread strategy which is akin to a butterfly. Here, there are four different strike prices (instead of three for the butterfly) for the same instrument and for the same date. Condors can be constructed with either calls or puts. They can be either long or short. A long condor entails the purchase of a low strike call, the sale of 2 different intermediate strike calls, and the purchase of a relatively higher strike call.
A trading strategy consisting of the sale (or purchase) of two options with consecutive exercise prices, together with the sale (or purchase) of one option with a lower exercise price and one option with a higher exercise price.
The sale or purchase of 2 options with consecutive exercise prices, together with the sale or purchase of 1 option with an immediately lower exercise price and 1 option with an immediately higher exercise price.
The condor refers to the purchase of two options with consecutive (rather than identical, as in the case of the butterfly) exercise prices, together with the purchase of an option with an immediately lower exercise price and one with an immediately higher exercise price. All options have to be of the same type, the same underlying asset, and expiry date.