An Iron Condor is a fixed risk, directionally neutral option strategy that makes money as long as the underlying index or stock does not move more than a specified amount prior to option expiration. As a seller of these contracts, time decay (theta) is on your side, and appropriate positioning of the puts and calls can provide a 90+% likelihood of the trade closing profitably.

Pangolin IC will trade Iron Condors only on the ETFs for the major indices (SPY and IWM). With these two indices, large price dislocations are extremely uncommon, unlike higher volatility stocks where earnings can cause a 5-10% move overnight. No more than two ICs will be put in place for any option expiration date, with a maximum dollars at risk of no more than $5000. The condors are established with a delta for each wing of 0.10 or less. We will also use only weekly options - these options have a much greater time decay and traditional monthly options, which as a seller works to our benefit.

Anyone who has traded options knows that Iron Condors are one of the most reliable strategies for generating steady income growth regardless of market direction. This is not rocket science - it is a simple and straightforward application of statistics to market activity.