Iron Condor
A four-leg credit spread that profits when price stays within a defined range — ideal for Balanced Day and Volatility Compression sessions.
An iron condor combines a put credit spread below the market with a call credit spread above the market. You collect a net credit, and the position profits if SPX stays between your short strikes at expiration.
Structure:
- ●Sell an OTM put, buy a further OTM put (bull put spread)
- ●Sell an OTM call, buy a further OTM call (bear call spread)
- ●Collect net premium
Max profit: the credit received (if SPX closes between the short strikes)
Max loss: width of widest spread - credit received
Breakeven: short strikes ± credit received
For 0DTE iron condors on SPX:
- ●Theta decay is extreme — condors placed at 9:30 AM can capture 50-80% of premium by 2:00 PM
- ●Wide wings (5-10 point spreads) provide margin of error
- ●Narrow body (short strikes close together) maximizes premium but increases risk
SPXXL recommends iron condors primarily for Balanced Day and Volatility Compression sessions — environments where directional risk is low and premium collection is maximized. The Close Zone projection helps determine optimal short strike placement.
Risk management: SPXXL's session phase monitoring alerts traders when the session type changes, signaling when an iron condor may be at risk of a directional breakout.
Related Terms
A session where price oscillates around a central value area with no directional conviction — the most common session type for SPX.
A session with unusually low range and volume — price consolidates tightly as the market coils before a potential expansion move.
A three-strike options strategy that profits when price settles near a target price — precision tool for the Close Zone phase.
The rate at which an option loses value as time passes — accelerates dramatically for 0DTE options as expiration approaches.