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Chapter 4. Volatility Strategies > Short Call Condor

4.8. Short Call Condor

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
+
   +   
AdvancedNeutralHigh• Short CallCappedCappedCapital Gain
   • Long Call   
   • Long Call   
   • Short Call   


4.8.1. Description

Short condors are identical to short butterflies, with the exception that the two middle bought options have different strikes. The Short Call Condor is another volatility strategy and is the opposite of a Long Call Condor, which is a rangebound strategy. Short condors aren't particularly popular because even though they produce a net credit, they offer very small returns compared to straddles and strangles, with only slightly less risk.


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