Core Viewpoint - Amazon (AMZN) is identified as a suitable candidate for an iron condor strategy due to its stock being positioned between the 50 and 200-day moving averages and exhibiting high implied volatility at 36.72% compared to a twelve-month low of 22.95% [1] Group 1: Iron Condor Strategy - An iron condor strategy is designed to profit from a decrease in implied volatility while keeping the stock within a specified range [3] - The maximum profit from an iron condor is limited to the premium received, while the maximum potential loss is also capped, calculated by the difference in strike prices of the long and short options minus the premium received [3] - The strategy combines a bull put spread and a bear call spread, allowing traders to profit from time decay while expecting minimal movement in the stock price [4] Group 2: Trade Details - For the December 19 expiry, the proposed trade involves selling the $200 put and buying the $190 put for the bull put spread, and selling the $250 call and buying the $260 call for the bear call spread [4] - The iron condor is expected to generate approximately $1.80 per contract, equating to $180 of premium, with a profit zone ranging between $198.20 and $251.80 [5] - The maximum risk in this trade is calculated as $820, leading to a potential return of 13.14% when dividing the premium by the maximum risk [5]