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Define: Broken Wing Condor Spread

Broken Wing Condor Spreads are condor spreads that transfers all the risk in one leg onto the other, resulting in a condor spread that loses money only when the stock breaks out in one direction instead of both directions.

This is achieved by buying out of the money options at a further distance from the nearest short strike price than the in the money options.

Eventhough loss can only be incurred in one direction, the maximum loss would be twice that of the loss of a normal condor spread.

Read the full tutorial on Broken Wing Condor Spreads.