A long condor consists of being long one call and short another call with a higher strike, and long one put and short another put with a lower strike. Typically, the call strikes are above and the put strikes below the current level of the underlying stock, and the distance between the call strikes equals the distance between the put strikes. All the options must be of the same expiration.
An alternative way to think about this strategy is as a long strangle with a short strangle outside of it. It could also be considered as a bull call spread and a bear put spread.
The long condor investor is looking for a sharp move either up or down in the underlying stock during the life of the options.
This strategy profits if the underlying stock is outside the outer wings at expiration.
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