Iron Condor Strategy for Weekly Expiry

## What is an Iron Condor? An Iron Condor is a non-directional options strategy that profits from low volatility and time decay. ### Structure 1. **Sell OTM Call** (higher strike) 2. **Buy OTM Call** (even higher strike) 3. **Sell OTM Put** (lower strike) 4. **Buy OTM Put** (even lower strike) ## When to Use - **Market View**: Range-bound, low volatility expected - **IV Percentile**: High (above 50%) - **Time**: Best initiated 5-7 days before expiry ## Setting Up for Bank Nifty ### Example Setup Bank Nifty at 51,000 - Sell 51,500 CE - Buy 51,700 CE - Sell 50,500 PE - Buy 50,300 PE ### Premium Collected - Net Credit: ₹80-100 per lot - Max Profit: Premium collected - Max Loss: Width of spread - Premium ## Management Rules ### Adjustment Triggers 1. **Delta breach**: If position delta exceeds ±0.20 2. **Price breach**: If price crosses short strike 3. **Time trigger**: Close at 50% profit or 2 days to expiry ### Common Adjustments - Roll tested side further OTM - Convert to Iron Fly if one side breached - Close entire position if both sides threatened ## Risk Management ### Position Sizing - Max 5% of capital per Iron Condor - Max 3 positions simultaneously ### Stop Loss - 2x premium collected - Or specific price level breach ## Win Rate Expectations - Win Rate: 70-80% with proper management - Average Win: 30-50% of max profit - Average Loss: 100-150% of premium ## Key Tips 1. Don't chase premium in low IV 2. Always have adjustment plan ready 3. Take profits early, don't wait for max profit 4. Avoid expiry week if unsure --- *Iron Condors require active management. Not suitable for beginners.*