noun
condor
An options trading strategy involving four contracts at different strike prices.
The trader builds a condor using options at four strike prices.
Etymology
The trading name extends the bird imagery used for a butterfly options spread. Its payoff arrangement has a broader central span with outer “wings,” suggesting the larger wingspan of a condor.
More examples
- She closes her condor before the options expire.
- This condor combines two spreads with the same expiration date.
- Traders compare condors with butterflies when planning an options position.
Forms
condor · condors
Similar words
- butterfly
- Uses three strike prices rather than a condor's four.
- spread
- Broad category of combined options positions that includes condors.