Expand model tag support: add GLM-5.1, simplify Anthropic IDs, scan tags anywhere in message
- Flink update_bars debouncing - update_bars subscription idempotency bugfix - Price decimal correction bugfix of previous commit - Add GLM-5.1 model tag alongside renamed GLM-5 - Use short Anthropic model IDs (sonnet/haiku/opus) instead of full version strings - Allow @tags anywhere in message content, not just at start - Return hasOtherContent flag instead of trimmed rest string - Only trigger greeting stream when tag has no other content - Update workspace knowledge base references to platform/workspace and platform/shapes - Hierarchical knowledge base catalog - 151 Trading Strategies knowledge base articles - Shapes knowledge base article - MutateShapes tool instead of workspace patch
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description: "A neutral income strategy combining a bull put spread and a bear call spread with four equidistant OTM/ITM strikes, collecting net credit when stock stays between the inner strikes."
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tags: [options, income, neutral, condor, iron]
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# Long Iron Condor
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**Section**: 2.50 | **Asset Class**: Options | **Type**: Income
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## Overview
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The long iron condor is a sideways strategy combining a bull put spread and a bear call spread. It consists of a long OTM put at K1, a short OTM put at K2, a short OTM call at K3, and a long OTM call at K4. All strikes are equidistant: K4 - K3 = K3 - K2 = K2 - K1 = kappa. This is a net credit trade. The trader's outlook is neutral. This is an income strategy.
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## Construction
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- Buy 1 OTM put option at strike K1 (lowest)
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- Sell 1 OTM put option at strike K2 (K2 > K1)
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- Sell 1 OTM call option at strike K3 (K3 > K2)
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- Buy 1 OTM call option at strike K4 (highest, K4 > K3)
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- All same expiry; K2 - K1 = K3 - K2 = K4 - K3 = kappa (equidistant)
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Net credit: C
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## Payoff Profile
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f_T = (K1 - S_T)+ + (S_T - K4)+ - (K2 - S_T)+ - (S_T - K3)+ + C
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- Upper breakeven: S*_up = K3 + C
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- Lower breakeven: S*_down = K2 - C
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- Max profit: P_max = C (if K2 <= S_T <= K3 at expiry; all options expire worthless)
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- Max loss: L_max = kappa - C (if S_T <= K1 or S_T >= K4)
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## Key Conditions / Signals
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- Neutral; expects stock to remain between K2 and K3 through expiry
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- High implied volatility makes the collected credit larger
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- Defined risk on both sides; popular for structured income trading
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## Notes
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The long iron condor is the most widely traded condor variant. It provides a wider profit zone than the iron butterfly (K2 to K3 instead of a single point) with the same defined-risk structure. Maximum loss is limited to kappa - C on either side.
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