We know that by trading naked options, we are able to increase our probability of profit by bringing in a larger amount of credit and extending our breakeven points. However, sometimes trading with unlimited risk is not possible due to account limitations. In order to get around this, we can buy out of the money options to define our risk and increase our return on capital. However when defining our risk, how do we know where to place our strikes? Today, Tom Sosnoff and Tony Battista take a look at 4 different Iron Condors and how they relate to their unlimited risk counterpart, a strangle. The guys look at an Iron Condor that collects 1/3 the width of the strikes, a Chicken Iron Condor (collecting 45%-50% of the width of the strikes), an unbalanced Iron Condor where the call spread is wider than that put spread, and a Big Boy Iron Condor where the long strikes are further away to mimic the strangle. Tom and Tony then look at managing these trades and seeing where they can create the highest profit per day. After they have established these levels, they compare them all and see how they stack up to the 1 standard deviation strangle!