Can you do an Iron Condor when VIX is 13.5 and the SPX is 30 points away from the all time highs? Yes, it depends on how you structure and manage the trade. This is the trade I just put on for SOM TV with SPX around $2247. Sell 1 Feb 3 2315 Call and Buy 1 Feb 3 2325 Call. Sell 1 Feb 3 2150 Put and Buy 1 Feb 3 2140 Put. Total Credit $2.20 credit. The deltas of the short options were around 15. The goal on the trade is to make 10% and not lose more than 12% of the risk or margin of the trade, $780. If the delta of the short call or put gets to 23 this week. I will look to either buy a call on the upside or put on the downside to cut my position deltas 1/2 or 2/3. I sold the Credit Spread for $2.20 credit, if it goes to around $1.40, I would buy back the Iron Condor for $1.40 debit, making around 10% on my capital.
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