Condor spread is an option position in which two price spreads positions are combined. The difference with the butterfly is that the condor spread is based on four different strike prices of the options compared to three exercise prices at butterfly spread.
Long Condor Spread: two calls are also bought and sold like the butterfly spread. The first purchased call is acquired at a lower price of the underlying (in-the-money) and the second purchased call is bought at a higher price of the underlying (out-of -the-money).
Two additional calls are sold. The first at the current price of the underlying (at-the-money) and the second slightly above the first. Short Condor Spread: also two calls are bought and sold at the short condor spread. Here, however, the first call is in contrast to the above long position, sold at a lower price of the underlying (in-the-money), and a second call sold at a higher price of the underlying (out-of -the-money).
The first at the current price of the underlying (at-the-money) and the second slightly above the first.
Ratio spread
A Ratio Spread (also called ratio vertical spread) entails long and short positions with different number of contracts to be built. A ratio call spread entails one or more calls that are bought with a low strike price and simultaneously sells a larger number of calls with a higher strike price. The calls all have the same maturity. This combination of long and short positions can be both a debit and a credit position.
With a ratio put spread one or more puts are sold at a low strike price and simultaneously bought a smaller number of puts at a higher strike price. This combination of long and short positions can be both a debit and a credit position.
Back spread (also called reverse spread) entails long and short positions with different number of contracts. Back Put Spread (also reverse ratio put spread) reversal of the ratio put spreads. Long positions are greater than the short positions and feature in the trade credit account.
Combined price – spread positions of different classes is a portfolio of bought (long) and selling (short) options. It involves combinations of call and put options, which can consist of different series. They differ in strike price or maturity.
The box spread is an options position that is based on arbitrage opportunities due to disparities in the valuation of call and put options. Long box denotes the purchase of the box spreads. This consists of a bull spread with calls (also bull call spread) and a bear spread with puts (also bear put spread).