Condor spread
A structure built from options at four strikes with a flat top to its payoff.
How to read the number
It differs from a butterfly in the width of the winning zone: the result is earned over an interval rather than at a point, at the cost of a smaller maximum.
When the metric lies
Four legs mean four commissions and four chances of not filling at the price assumed. On illiquid strikes the calculated advantage disappears while the orders are still being worked.
Also known as: condor option strategy