> For the complete documentation index, see [llms.txt](https://options--ai.gitbook.io/options-ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://options--ai.gitbook.io/options-ai/trading-strategies/buying-options/low-volatility-options.md).

# Low Volatility Options

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Making profits when the market is trading sideways
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## **Overview**

In low volatility markets, you can profit from minimal price changes using two strategies: Long Butterfly and Long Condor. Both strategies aim to make profits when the price of an asset stays relatively stable.

## **Key Strategies**

### **1. Long Butterfly**

<figure><img src="https://1232411899-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRhfb7RrBEhY0QxoTXTim%2Fuploads%2FUfTn5CC85ePr1kmGzWGi%2Flong.png?alt=media&amp;token=e72d7027-2a68-493d-ab25-0a3796dcc561" alt=""><figcaption></figcaption></figure>

* **Structure:** Sell ATM Call and ATM Put, and buy OTM Call and OTM Put (Narrow and Wide ranges available).
* **Cost:** Low.
* **Profit Potential:** High if the price stays near the strike price.
* **Use Case:** Ideal for betting on low volatility.
* **Example Reasoning:** “I don’t care what the price will be, but if it doesn’t change significantly, I win.”
* **Key Point:** Profitable when the asset’s price remains stable; loses if there’s significant price movement.

### **2. Long Condor**

<figure><img src="https://1232411899-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FRhfb7RrBEhY0QxoTXTim%2Fuploads%2F6BHMi6ROXCPT3TV5yqAM%2Flongerr.png?alt=media&amp;token=3539e7c4-f638-4759-bffe-778082264f21" alt=""><figcaption></figcaption></figure>

* **Structure:** Sell OTM Call and OTM Put, and buy higher OTM Call and lower OTM Put (Narrow and Wide ranges available).
* **Cost:** Low.
* **Profit Potential:** Decent if the price changes slightly within a \~10% range.
* **Use Case:** Ideal for betting on low volatility.
* **Example Reasoning:** “I don’t care what the price will be, but if it stays within a small range, I win.”
* **Key Point:** Profitable when the asset’s price moves within a small range; loses if the price moves significantly outside the range.

### **Important Points**

* **Profitability:** Both strategies are profitable when market volatility is low.
* **Immediate Profit:** You start in profit after purchasing the strategy.
* **Expiry:** You need to wait until expiration to realize any profits. Parameters can’t be changed or exercised early.

## Conclusion

For low volatility markets, the Long Butterfly and Long Condor strategies offer ways to profit from minimal price changes. Choose the Long Butterfly for higher profits near a strike price and the Long Condor for steady profits within a small price range. Both strategies start profitable and require holding until expiration for potential gains.