Iron condors are a popular options trading strategy that involves selling options with a higher and lower strike price, while buying options with a middle strike price, to collect premiums. This strategy is designed to take advantage of time decay and volatility skew, while limiting potential losses.

Here's a step-by-step breakdown of the iron condor strategy:

1. *Sell a call option with a higher strike price* (above the current market price)

2. *Sell a put option with a lower strike price* (below the current market price)

3. *Buy a call option with a middle strike price* (at or near the current market price)

4. *Buy a put option with a middle strike price* (at or near the current market price)

By selling the higher and lower strike price options, you collect premiums from the buyers of those options. By buying the middle strike price options, you limit your potential losses if the price of the underlying asset moves significantly.

The iron condor strategy is a neutral strategy, meaning it doesn't rely on the price of the underlying asset moving in a specific direction. Instead, it profits from the premiums collected and the time decay of the options.

*Key benefits:*

- Collects premiums from sold options

- Limits potential losses with bought options

- Can be adjusted to suit different market conditions and trader preferences

*Key risks:*

- Potential losses if the price of the underlying asset moves significantly

- Time decay can work against the trader if the options expire worthless

- Volatility skew can affect the pricing of the options

Overall, iron condors are a popular strategy for experienced traders who understand the risks and rewards of options trading.