A low risk, non-directional options strategy that aims at making a limited profit at a large probability level when the volatility of an underlying security is expected to be low. The iron condor involves buying or selling four options at four different exercise prices.

In other words, this strategy is a combination of a bull put spread and a bear call spread. The investor builds up such a strategy by shorting an out of the money put with a lower exercise price, longing an out of the money put with an much lower exercise price, shorting an out of the money call with a higher exercise price and longing an out of the money call with a much higher exercise price.