Iron condor
A capped straddle. Buy wings outside your short strikes so the worst case is known before you enter.
BIASNeutral
VOL VIEWFalling IV
RISKDefined
STRUCTURERANGE
CONDPAYOFF AT EXPIRY
LEGSLIVE CHAIN—
| ACTION | QTY | TYPE | STRIKE | LAST |
|---|
You give up part of the straddle's credit to buy the wings, and in exchange the margin is small and the max loss is fixed at the wing width minus the credit. The trade is a bet that the index expires between the short strikes.