The Iron Condor
A four-legged, defined-risk, market-neutral strategy: sell an out-of-the-money put spread and an out-of-the-money call spread to collect a credit and profit if the stock stays in a range. The payoff plateau, the high-probability trade-off, and how time decay pays you for stillness.
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Credit Spreads
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Straddles & Strangles
Direction-neutral volatility strategies: buying a call and a put together to profit from a big move either way. The long straddle (same strike) and long strangle (cheaper, wider strikes), their V-shaped payoffs, two break-evens, the volatility-crush trap, and when betting on movement beats betting on direction.
The Option Greeks: Theta & Time Decay
Theta — the Greek that measures time decay. How much an option loses each day simply because expiration draws nearer, why that decay accelerates into the final weeks, why it peaks at the money, and why it makes time the option buyer's enemy and the seller's ally.
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