What "iron condor" means in finance

An iron condor is a type of options trading strategy that involves selling both a call spread and a put spread on the same underlying asset with the same expiration date, but different strike prices. This results in a net credit for the trader, who profits as long as the underlying asset remains within a certain price range, known as the "profit zone". If the asset price moves outside of the profit zone, the trader can face significant losses. Iron condors are often used in low-volatility market environments and can be adjusted to manage risk and potential losses.