What describes the "Iron Condor" options strategy?

The Iron Condor options strategy is characterized by its design to capitalize on low volatility in the market. It involves selling an out-of-the-money call spread and an out-of-the-money put spread, creating a range within which the underlying asset is expected to trade. This setup allows the trader to collect premiums from both spreads, aiming for the underlying asset to remain within a specific price range until expiration.

During this time, if the asset's price stays between the strike prices of both spreads, the options can expire worthless, enabling the trader to retain the entirety of the premiums collected. The strategy effectively benefits from the lack of significant price movement, making it particularly appealing in market conditions where low volatility is anticipated.

While other strategies like hedging against price fluctuations or profiting from high volatility exist, they do not encapsulate the fundamental characteristics of the Iron Condor, which is specifically designed to exploit a stable market environment.