CG Chris Griffis

Manual

Iron Condor

A range capture play for stable markets without a single dominant magnet.

Positive gamma Income Range Defined risk Short gamma

The “Range” Play - Profit when price stays between defined boundaries.

Overview

Attribute Value
Environment Positive Gamma (Range)
Market Dynamic No Clear Magnet / Choppy
Volatility Any
Primary Goal Range Capture - Profit if price stays “between the posts”
Profit Target 50% of Max Credit
Max Loss Width of one spread minus total Credit

Structure

  • Sell OTM Call Spread (Call Wall or ~15-20 Delta)
  • Sell OTM Put Spread (Put Wall or ~15-20 Delta)

Entry Criteria

  • Positive Gamma environment confirmed
  • No clear single magnet strike
  • Identifiable Call Wall and Put Wall levels
  • Price is choppy/range-bound

Exit Rules

Profit Target

  • Close at 50% of max credit
  • Since you collect less premium than a Fly, squeeze more out of it

Stop Loss

  • 3x Credit Received
  • Stop out if one side is tested

Management

If one side is tested:

  1. Roll the untested side closer to collect more credit
  2. Do NOT roll the tested side
  3. Use the additional credit to defend delta