Short Iron Condor – Range Trading with Risk Control

A Short Iron Condor is a neutral strategy where an OTM Call and an OTM Put are sold, with further OTM options bought for protection. It offers income with capped risk. When to use: Use this strategy when the market is range-bound, volatility is low, and protection is preferred over unlimited risk. Historic Example: In August 2024,

was expected to remain between 1900 and 2000 for September 2024 expiry. • Sell 2000 Call @ ₹20, Buy 2050 Call @ ₹12 • Sell 1900 Put @ ₹28, Buy 1850 Put @ ₹10 Net premium received = ₹26 Profit & Risk: Max Profit = ₹26 Max Loss = ₹24 (limited) Key takeaway: Short Iron Condor delivers steady income with defined risk, making it suitable for disciplined range traders. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.