Iron condors are one of tastytrade's commonly used defined risk strategies. But how do they perform when we look at specific market environments?Study
- Compared with short 30 options and long wings $5, $10, and $20 wide
- All trades at 50% of max profit
- 45 days to
- S&P 500 (SPY)
- 2005 to present
The Research Department uncovered that in high and lowenvironments, the wider Iron Condor outperforms. However, in times of extreme selloff like 2008, the narrower Iron Condor outperforms because the wide IC was exposed to larger losses, as its long strikes were further away.