realise the maximum profit potential. Related strategies An option trader who considers a long iron condor strategy is one who expects the price of the underlying to change greatly, but isn't certain of the direction of the change. This trader might also consider one or more of the following strategies. A strangle is effectively a long iron condor, but without the wings. It is constructed by purchasing an out-of-the-money put and an out-of-the money call. The strangle is a more expensive trade (higher net debit to be paid due to the absence of the outer strikes that typically reduce the net debit), but the Strangle does not restrict profit potential in the case of a dramatic change in the spot price of the underlying instrument. A long iron butterfly is very similar to a long iron condor, except that the inner, long strikes are at the same strike. The resulting position requires the underlying's spot price to change less before there is a profit, but the trade is typically more expensive (larger net debit) than a long iron condor. Likewise, a long iron butterfly almost never allows the trader to realize that maximum profit potential, as this would require the stock to expire exactly at the strike price on expiration. This contrasts with the iron condor, which offers a wider space in between the long strikes. The iron butterfly is alternatively called an ironfly. A straddle is effectively a long iron butterfly without the wings and is constructed simply by purchasing an at-the-money call and an at-the-money put. Similar to the strangle, the straddle offers a greater profit potential at the expense of a greater net debit. A bear put spread is simply the lower side of a long iron condor and has virtually identical initial and maintenance margin requirements. This spread is alternatively called a put debit spread. A bull call spread is simply the upper side of a long iron condor and has virtually identical initial and maintenance margin requirements. This spread is alternatively called a call debit spread. References Options (finance)