Reverse Iron Condor

volatility4 legs

Also known as: Long Iron Condor

Buy the inner strangle, sell the outer wings. Defined-risk bet ON a big move.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

Buy a strangle, then sell a wider strangle around it to cut the cost. A defined-risk bet that the stock ESCAPES the inner strikes before expiration — the debit version of betting on movement.

When to use it

Big-move expectations when long straddles are too expensive — you cap the payoff to lower the price of admission. Popular ahead of earnings.

What can go wrong

Maximum loss is the net debit, hit when the stock stays inside the inner strikes. Profit caps at the wing width minus the debit — check the move you need is realistic before entry.

New to options? Start with the free curriculum — or see which strategy fits your outlook.

Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.