Naming of Winged Spreads

Discussion in 'Options' started by LanceJ, Sep 10, 2019.

  1. LanceJ


    Short or Long is in relation to the net Debit or Credit of the position?
    Where it is setup in relation to the money determines whether it is Iron or not? All the legs of the spread have to be OTM to be considered Iron?
  2. gaussian


    IIRC a "condor" is another name for a strangle. An "iron" condor has defined risk in the wings.

    Short is credit, long is debit. Your "positionality" is determined by the type (put/call).
  3. I've seen it used in odd ways before, but most people refer to it as you describe.

    No. An iron condor where one side has gone ITM is no less an iron condor.

    A "plain" condor consists of a pair of spreads, with shorts closer in and longs further out, on one side (either put or call). An iron condor consists of both a put spread and a call spread.