Iron condor options strategies represent one of the most probability-weighted approaches to generating consistent premium income. By selling both a call credit spread and a put credit spread simultaneously, traders create a defined-risk position that profits when the underlying security remains range-bound. The challenge lies not in understanding the mechanics, but in identifying high-probability candidates and tracking complex multi-leg positions through their entire lifecycle.
Most traders struggle with three critical aspects of iron condor trading: finding liquid opportunities with favorable risk-reward profiles, executing the four-leg structure efficiently in their brokerage platform, and maintaining accurate profit and loss tracking when positions require adjustments or rolls. Without systematic tools for each of these steps, iron condor trading becomes inconsistent and difficult to scale.
This comprehensive guide walks through MyATMM's iron condor suggestion system, demonstrates execution in TastyWorks (one of the best platforms for options spreads), and explains how to track these complex positions through multiple adjustments. By the end, you'll understand how to filter for the highest-probability trades, execute them efficiently, and maintain accurate records throughout the position's life.
MyATMM's iron condor suggestions scan hundreds of potential opportunities daily, analyzing every stock and ETF that trades weekly options. The system looks specifically for balanced iron condor setups where both the put and call sides meet probability thresholds, generating a filtered list of high-potential candidates.
The suggestion engine evaluates each ticker across all available expirations in the next 14 days, examining:
On any given day, the system may identify 800 to 900+ potential iron condor setups across all available tickers and expirations. This raw list requires filtering to identify the most attractive opportunities.
MyATMM includes a unique filtering criterion not found in other options tools: the "in range" percentage. This metric compares a stock's weekly average trading range to the full iron condor range.
Here's how it works:
A stock with a $1.52 weekly average move and a $16 iron condor range shows 9% - meaning the typical weekly move represents only 9% of the full profit zone. This suggests high probability the stock will remain within the profitable range for the week. Conversely, a stock showing 272% has a weekly average move that exceeds the iron condor range multiple times, indicating poor candidate selection.
Beyond the in-range calculation, the system provides multiple filters for refining the suggestion list:
By stacking these filters, traders can narrow 900+ suggestions down to a handful of high-quality candidates that match their specific criteria for liquidity, return profile, and capital commitment.
With hundreds of potential iron condors identified daily, effective filtering separates mediocre setups from truly attractive opportunities. The filtering process should be systematic and repeatable, creating consistency in trade selection.
One effective approach combines multiple conservative filters to identify the highest-quality candidates:
Applying these filters might reduce 923 suggestions down to just 13 highly-qualified candidates. This manageable list consists entirely of high-quality underlying stocks with favorable probability profiles.
The spread column shows the difference between bid and ask prices for each leg of the iron condor. This matters significantly when entering positions:
The maximum spread filter allows excluding positions where any leg has a spread exceeding your threshold, ensuring all four legs of your iron condor trade efficiently.
Iron condor collateral equals the spread width (in dollars) multiplied by 100 per contract. A $5-wide iron condor requires $500 collateral per contract. The system allows filtering by both minimum and maximum collateral:
After filtering, sorting by profit percentage reveals which qualified candidates offer the best return on capital. A 27% profit potential on $250 collateral represents strong risk-reward for a high-probability trade.
TastyWorks provides one of the best interfaces for executing and visualizing multi-leg options strategies. The platform makes iron condor execution straightforward once you understand the workflow.
Using an example from the filtered suggestions, consider an iron condor on Exxon Mobil (XOM) expiring February 24th with the following strikes:
| Position | Strike | Delta | Price |
|---|---|---|---|
| Buy Put | $112 | 0.15 | $0.56 |
| Sell Put | $113 | ~0.25 | $0.71 |
| Sell Call | $125 | ~0.25 | $0.29 |
| Buy Call | $126 | 0.15 | $0.23 |
The suggestion system provides a starting point, but traders should evaluate whether adjustments improve probability or risk-reward:
For the XOM example, the suggested strikes provided approximately $28 profit potential on a two-week position. Alternative strike selection one standard deviation out might reduce profit to $23 but significantly increase probability of success.
Accurate position tracking becomes critical with iron condors because these four-leg positions often require adjustments as the underlying stock moves. Without systematic tracking, it's easy to lose sight of total profit and loss across multiple transactions.
After executing an iron condor in your brokerage, log the position in MyATMM's cost basis tracking:
For the XOM example above, the entry would show:
The system automatically calculates net credit ($0.21 per share or $21 per contract) and displays collateral required ($100 for $1-wide spreads). Your overall profit immediately shows as $21 (the net premium collected).
The true power of MyATMM's iron condor tracking emerges when positions require adjustment. Consider a scenario where the underlying stock price drops, approaching your short put strike. To manage risk, you might "roll down" the call side to collect additional premium and offset potential losses on the put side.
Scenario: Stock drops from $118 to $113, approaching the $113 short put strike. The call side (originally $125/$126) now has minimal value since the stock moved away from those strikes.
Adjustment Strategy:
To track the adjustment described above:
The position display shows all transactions chronologically with running total profit. You can see exactly how much premium you've collected across the initial position and any subsequent adjustments, minus any costs to close legs.
Some iron condors may require multiple adjustments over their life, especially on longer-duration positions. MyATMM handles unlimited rolls, maintaining accurate total gain or loss across dozens of individual transactions if necessary. This comprehensive tracking provides clarity that would be nearly impossible to maintain manually or in a spreadsheet.
Understanding when iron condors excel and where they face limitations helps traders deploy them strategically within a broader options portfolio.
Certain characteristics make stocks particularly well-suited for iron condor trading:
The three major pain points in iron condor trading - finding qualified opportunities, executing efficiently, and tracking complex positions - each have systematic solutions.
Rather than manually screening hundreds of stocks for appropriate volatility, liquidity, and strike availability, MyATMM's suggestion system does this automatically. The daily scan identifies iron condor setups across all weekly options, calculates profitability metrics, and provides proprietary filters for probability assessment. This transforms opportunity identification from hours of work to minutes of filtering.
By providing specific strikes from the suggestion system, traders can jump directly into their brokerage platform (TastyWorks recommended) with concrete parameters. The suggestions serve as starting points that can be refined based on current market conditions and risk tolerance. This eliminates the "blank slate" problem where traders must determine every parameter from scratch.
The MyATMM cost basis system maintains comprehensive transaction history across all iron condor legs and any subsequent adjustments. At a glance, you can see:
This comprehensive view enables informed decisions about whether to adjust, close early, or hold through expiration. Without systematic tracking, these decisions become guesswork.
Iron condors represent a sophisticated yet accessible strategy for generating consistent premium income with defined risk. The combination of high probability setups (when properly filtered) and manageable position structures makes them attractive for income-focused traders.
Success with iron condors requires systematic execution across three critical areas: identifying high-quality candidates through disciplined filtering, executing the multi-leg structure efficiently in a capable platform, and maintaining accurate tracking through the position's entire lifecycle including any adjustments. Each of these areas can be systematized, removing guesswork and creating repeatable processes.
MyATMM's iron condor suggestions provide daily analysis of 800+ potential setups, automatically calculating profitability metrics and applying proprietary probability filters. The suggestion system dramatically reduces screening time while improving candidate quality. Combined with execution in TastyWorks and position tracking in MyATMM's cost basis system, traders gain complete workflow coverage from identification through final position reconciliation.
For traders seeking to add range-bound strategies to their income-generating toolkit, iron condors offer compelling characteristics: defined risk, high probability when properly constructed, and efficient capital deployment. With systematic tools for each stage of the process, this strategy becomes practical to implement consistently and scale over time.
Options trading involves substantial risk and is not suitable for all investors. Iron condors carry defined maximum loss but can still result in significant capital loss if the underlying security moves beyond your strikes. Past performance does not guarantee future results.
This content is for educational purposes only and should not be considered financial advice. The examples and scenarios presented do not represent recommendations to buy or sell specific securities or execute specific strategies. Always consult with a qualified financial advisor before making investment decisions, and never trade with capital you cannot afford to lose.
Options strategies carry unique risks including but not limited to: time decay, volatility risk, assignment risk, and liquidity risk. Ensure you fully understand these risks and have appropriate experience before trading options strategies like iron condors.
Managing complex multi-leg strategies requires accurate position tracking. MyATMM's cost basis system handles iron condors and all their adjustments with ease.
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