Build a Short Put Condor Strategy

What is a short put condor?

DirectionalLimited ProfitLimited Loss

Similar to a short put butterfly, but the middle options have different strikes. It has a wider unprofitable range than a short put butterfly, but the potential profit outside of that range is higher and the maximum loss is lower.

ABCDProfitLossStock Price
  • Sell a put at strike A
  • Buy a put at strike B
  • Buy a put at strike C
  • Sell a put at strike D