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Short Call Condor


A neutral option strategy that is based on four legs involving selling a low strike call, buying two middle strike calls with different strike prices, and buying a higher strike call.

In other words, this position can viewed as a combination of a bear call spread and a bull call spread.

Short call condor = bear call spread + bull call spread

Short call condor = [short ITM call (lower strike) + long ITM call (higher strike)]+ [long OTM call (at yet higher strike) + short OTM call (at yet higher strike)]

This strategy constitutes a bet on high volatility.


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