Stock Market Options Trading 170: SPX Iron Condor Setup
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Nov 6, 2025 Explore the nuances of trading with an SPX Iron Condor setup as volatility rises. Learn how to take advantage of wider option premiums during market dips. Discover entry strategies with specific credits and how to calculate potential profits and losses. Eric shares his plan for profit-taking and adjustments for sharp market movements. Delve into the impact of VIX spikes on trade strategies and the importance of waiting for confirmation before entering the market. Perfect for both beginners and seasoned traders!
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Previous Pullback Example With VIX Spike
- Eric recalls a prior pullback about a month earlier when the VIX spiked into the high 20s.
- He uses that example to illustrate how past volatility produced attractive option prices for selling premium.
Volatility Creates Better Iron Condor Opportunities
- Eric O'Rourke notes that when the market pulls back the VIX usually spikes and option premiums expand.
- He sees high volatility as an opportunity to sell wider SPX iron condors for better credits.
Concrete SPX Iron Condor Setup And Math
- Eric outlines a specific two-week SPX iron condor using 10-point wings at 6950/6960 calls and 6550/6540 puts for about $3.25 credit.
- He calculates max loss as $10 minus credit, here $6.75 per contract, and treats that as the trade's risk.