Strategy

Iron Condor Quiz

By Leida Casadiegos · Updated June 2026 · 2 min read · Risk disclaimer

An iron condor is a defined-risk bet that a stock stays in a range. These six questions check that you know where the money — and the danger — comes from.

Pick an answer for each question — your score appears at the end.

1. Question 1An iron condor is built from…

   Two long callsA bull put spread and a bear call spreadA straddleA covered call

   It combines an out-of-the-money put spread and call spread.

2. Question 2An iron condor profits when the stock…

   Rises sharplyFalls sharplyStays in a rangeGaps overnight

   It wins when price stays between the two short strikes.

3. Question 3An iron condor is opened for a net…

   CreditDebitZero cost onlyMargin call

   You collect premium on both spreads, so it is a credit trade.

4. Question 4Max profit on an iron condor equals…

   The width of the wingsThe net credit receivedUnlimitedThe strike price

   Best case, all options expire worthless and you keep the full credit.

5. Question 5An iron condor benefits from…

   Rising IVTime decay and falling IVLarge movesDividends

   As a net seller you profit from theta and from IV falling.

6. Question 6The main risk of an iron condor is…

   A big move beyond either short strikeTime passingIV fallingThe stock staying flat

   A sharp move past a short strike pushes the position to its max loss.

Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy Policy · Terms & Conditions.