Calling All Fans!

We're letting tastynation call the shots! Give us your trade idea or let us solve your problems.

Submit

Market Measures

Monday – Friday | 9:00 – 9:20a CT

Wide Iron Condors

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

When initiating an iron condor, increasing the width of its wings can help the trade better mimic the performance of a strangle with much less buying power.

tastytrade's research team examined 20 delta, 45 DTE iron condors with varying widths among $1, $2, $3 and $5. The wider the wings of the iron condor, the larger the average P/L, the larger the ROC, as well as a higher win rate.

Additionally, the team discovered that with the contracts scaled for buying power, the cumulative P/L for $5 wide iron condors is generally larger than $1 wide iron condors, but with lower volatility.

Market Measures More installments

See All »

Latest tastytrade Videos As of July 17

Most Shared From the last 30 days