The trader sets up an iron condor by selling an OTM put spread and an OTM call spread. Net Credit = $4 -$2 = $2. Since options control 100 shares per contract, the max profit per contract is $200.
The max profit for an iron condor is the initial credit received. The max loss is the spread width less credit received and occurs when the entire call or put side expires in-the-money (ITM). A short ...
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