An Iron Condor combines four Option legs — selling a Call and buying a further-OTM Call (a Bear Call Spread), plus selling a Put and buying a further-OTM Put (a Bull Put Spread) — profiting when the underlying stays within the range between the two sold strikes through expiry. Typically constructed for a net credit, with both maximum profit and maximum loss defined and calculable.
Related Reading
See the full construction, formulas, and a worked example in Iron Condor Strategy Explained for Beginners.