Short condor vs reverse iron condor
The iron condor is a combination of a bull put spread and a bear call spread. It is a strategy that projects low volatility on the underlying security. When the volatility of the underlying security is low, the trader can earn a limited profit. The iron condor is created from options expiring in the same month and results in a net credit.
Reverse iron condor is executed, there is a resultant net debit. That means that there is a net outflow of monetary resources used to establish the trade. Simply put, the options trader has to pay to establish the reverse iron condor trade. The reason for this is that the total options premium for long positions is greater than the total options premium for short positions.
