Neutral Strategy

Iron Condor Strategy: AI-Powered Selection

The iron condor is a four-leg options strategy that profits when a stock stays within a range. Alpha Copilot helps you find the right width, strikes, and expiration using real-time probability data.

What is an iron condor?

An iron condor combines a bull put spread and a bear call spread. You sell an out-of-the-money put spread below the current price and an out-of-the-money call spread above it. You collect a net credit and profit if the stock stays between your short strikes at expiration.

Defined Risk

Max loss is limited to the width of your spreads minus credit received.

High Probability

Well-placed iron condors can have 60-80% probability of profit.

Market Neutral

Profits from low volatility and time decay, not directional moves.

Key factors in iron condor setup

Width Selection

Wider iron condors have higher probability of profit but lower premium relative to risk. Narrow condors offer better risk/reward but break more often. Finding the right balance is key.

Short Strike Placement

Place short strikes at delta levels matching your probability target. 15-20 delta short strikes typically give 60-70% PoP. Alpha Copilot evaluates all delta levels to find the best risk/reward.

Underlying Selection

Iron condors work best on broad indices (SPY, QQQ) or large-cap stocks with high liquidity and elevated IV rank. Avoid iron condors around earnings or major events.

How Alpha Copilot builds your iron condor

Alpha Copilot analyzes multiple width and strike combinations, evaluates probability of profit, and recommends the setup with the best risk/reward for your goals.

Try asking:

"Set up an iron condor on SPY for the next 30 days"

"Best iron condor for income this week"

"Conservative iron condor on QQQ with high PoP"

Try it free — build your iron condor

Detailed guides by ticker

Explore iron condor setups for specific stocks and market conditions.

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