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NeutralVolatility strategyAdvanced

Iron Condor

Sell both a put spread and a call spread to profit from range-bound moves and falling volatility.

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High implied volatility with expected calming – ideal after earnings or volatility spikes.

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  1. Pick an underlying with high IV and expected sideways action
  2. Sell an OTM put (~16 delta)
  3. Buy a further OTM put as protection
  4. Sell an OTM call (~16 delta)
  5. Buy a further OTM call as protection
  6. 30–45 DTE, close at 50% profit
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SPY at 500 USD, IV rank 60. Sell the 485/480 put spread and 515/520 call spread for net 1.80 USD (= 180 USD). Max loss 320 USD. If SPY stays between 485 and 515 → keep full premium.