DeCalls Whitepaper
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Iron Condor (2 Calls & 2 Puts)

The strategy known as the “Iron Condor” requires buying and selling both Call and Put options at different strike prices.
Sounds confusing? Let’s break it down.
If you think prices will stay relatively stable, you sell Call and Put options with relatively near strike prices to collect a premium as you wait for the options to expire (you hope they expire worthless and are not exercised).
To protect yourself from any drastic price changes, you buy cheaper Call and Put options that have strike prices farther away from the current floor price. Since these options are cheaper than the ones you sold with near strikes, you make a net profit if prices remain flat until all contracts expire.
This strategy is much more complicated than all the ones named above, so let’s give an example:
You hold an NFT from a certain project with a floor price of 100 SOL. You collateralize your NFT and sell a Call option with 110 SOL strike price and pocket 8 SOL from the premium. You also collateralize 90 SOL in order to sell a Put option and pocket another 7 SOL.
You’ve made 15 SOL so far, but you’re worried that if the project goes to 0 you’ll lose that 90 SOL worth of collateral, or if the project moons you’ll be forced to sell your NFT too soon. So you also buy a cheaper Put option with a lower strike price of 80 SOL (and you pay 3 SOL for it) and you also buy a cheaper Call option with a higher strike of 120 SOL (and pay 5 SOL for that).
Let’s review:
Sell Call @ 110 SOL (receive 8 SOL) Buy Call @ 120 SOL (pay 5 SOL) Sell Put @ 90 SOL (receive 7 SOL) Buy Put @ 80 SOL (pay 3 SOL)
In total you received 15 SOL and paid 8 SOL, making a net profit of 7 SOL. As long as the floor price stays between 90 and 100 SOL, you’re in a profitable business.
If, however, the price skyrockets to 130 SOL, you would be forced to sell your collateralized NFT for 110 SOL, though you would be able to buy another at 120 SOL (meaning you lost 10 SOL of potential profit that you would have gained if you just held the NFT). Or if the price collapses to 70 SOL, you would be forced to buy another NFT for 90 SOL although you can exercise your Put option to sell it back for 80 SOL (taking a 10 SOL loss there).
In either of the 10 SOL loss scenarios, since you made 7 SOL in premiums your net loss would be 3 SOL.
Note: DeCalls only allow Call sellers to create “covered calls” with a collateralized NFT, which is slightly different from a traditional Iron Condor strategy that does not involve holding the underlying asset. This means that an Iron Condor on DeCalls is a suitable strategy for an investor that is long-term bullish on a project, but short-term expecting prices to remain flat.