The iron condor is an option trading strategy utilizing two vertical spreads – a put spread and a call spread with the same expiration and four different strikes. A long iron condor is essentially selling both sides of the underlying instrument by simultaneously shorting the same number of calls and puts, then covering each position with the purchase of further out of the money call(s) and put(s) respectively. The converse produces a short iron condor.
The strategy was part of UBS’ disastrous “Yield Enhancement Strategy.” UBS created millions of dollars of losses in the YES program.
For more information on the Iron Condor, see https://en.wikipedia.org/wiki/Iron_condor
Have you suffered losses in the UBS “YES” program? If so, call Mark Astarita, Esq. at 212-509-6544 to discuss your losses and potential for recovering same.