Iron Condors

10 · Iron Condors

The defined-risk, neutral premium-selling division. An iron condor is a short strangle

with protective long wings bolted onto each side — you sell a range you expect the underlying

to stay inside, collect a net credit, and cap the loss with long options further out. This

folder covers the iron condor and its narrow-bodied, higher-credit cousin, the iron butterfly.

These are the capped-risk siblings of the undefined-risk strategies in

09_strangles. The mechanics rest on the foundations:

03_implied_volatility (IV-Rank entry filter),

02_probability (delta-as-probability strike selection),

05_trade_management (50% / 21-DTE / rolling rules), and

06_portfolio_management (sizing the defined risk).

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Both: enter in high IV Rank (>50), ~45 DTE, defined max loss = width − credit,

breakevens = short strike ± credit, and respect the ~21-DTE time stop.

07_short_premium · 08_defined_risk · 09_strangles · 11_credit_spreads · 05_trade_management

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_Evidence-labeled per the Project Charter. Education only, not financial advice._