Short Put Condor
The Short Put Condor is identical to the Short Call Condor except that it uses puts
instead of calls. It is the opposite of a Long Put Condor, which is a rangebound strat-
egy. Short condors arent particularly popular because even though they produce a
net credit, they offer very small returns compared to straddles and strangles with
only slightly less risk.
The Short Put Condor involves a low strike short put, a lower middle OTM long
put, a higher middle ITM long put, and a higher ITM short put. The resulting posi-
tion is profitable in the event of a big move by the stock. Again, the problem is that
the reward is seriously capped and is typically dwarfed by the potential risk if the
stock fails to move.