# Low Volatility Options

{% hint style="info" %}
Making profits when the market is trading sideways
{% endhint %}

## **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="/files/67Sq5u8EwhgrmvsjszPP" 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="/files/rmljBLe4hGcqgItTBgaa" 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.


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