Reverse Iron Condor Spread


The Reverse Iron Condor Spread is a complex volatile options strategy with limited maximum profit and limited maximum loss potential and profits when the underlying stock breaks out to upside or downside. The limited scope of profits is complimented by a matching limit on the possibility to incur a loss. Thus, this strategy appeals to the intellect of most advanced options traders to invest and make a viable return.

The basic assumption pertaining to the strategy relates to the volatile movement of the stock markets. If the investor expects a sharp movement in the prices of an underlying security, they might seek to implement the Reverse Iron Condor Strategy for maximum return.

The strategy involves entering into four different transactions in both, call and put options. Even though the investor may not be sure of the direction in which the price of the security may move.

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Educated in Finance, Business and Statistics, Ankur is passionate about finance, investing, trading and programming.

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