Options
Iron Condor Explained With Apple (Build a Range)
Date: 2026-08-29 12:00:26
Let’s look at a stock chain example with Apple (AAPL).
Imagine building a range around the current price:
above the market is the call side
below the market is the put side
If I sell a call spread above the market, I’m saying:
“I don’t think price goes above this level.”
If I sell a put spread below the market, I’m saying:
“I don’t think price goes below this level.”
Combine them and you’ve built a neutral range — that’s an iron condor.
Now you can make the range wider or tighter:
move short strikes farther away → more room, probability may improve, less premium
move strikes closer → more premium, probability drops, less room
That’s the trade-off.
Neutral strategies don’t remove risk — they define the range where you want your risk to live.
#optionstrading #ironcondor #NeutralStrategy #SellingPremium #optionseducation
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
