Iron Condor

An iron condor sells an out-of-the-money put spread and an out-of-the-money call spread on the same expiration, collecting two credits for a bet that the stock stays inside a range. The long wings cap the risk on both sides, making the max loss known at entry.

The position is short volatility and long time: theta works for it every day the stock idles between the short strikes, and falling IV inflates the profit. Max profit is the total credit, earned if both spreads expire worthless; max loss is the wing width minus the credit, hit if the stock blows through either side.