Print this. Follow it. No exceptions. Every Iron Condor trade must pass ALL criteria before I enter. This checklist is the difference between systematic income and gambling.
Related Resources:
- 📖 Main Iron Condor Strategy Guide - Complete strategy overview
- 📊 Iron Condor Workflow Guide - Daily/weekly workflow and adjustments
- 📄 Iron Condor 1-Page SOP - Quick reference for your desk
Entry Checklist (All Must Be YES) #
This is a pre-flight checklist. Just like pilots don’t skip steps before takeoff, I don’t skip steps before placing a trade.
Market Context Checks #
Before looking at any specific setup, I assess the overall market environment.
| Check | Criteria | Why |
|---|---|---|
| ☐ | VIX between 14-25 | Below 14 = thin premiums. Above 25 = trending moves likely. |
| ☐ | SPY above 50-day MA | Confirms we’re not in a sharp downtrend. |
| ☐ | SPY above 200-day MA | Confirms we’re not in a bear market regime. |
| ☐ | No major macro event in 48h | FOMC, CPI, jobs report = unpredictable gaps. |
| ☐ | VIX term structure in contango | Front month < back month = normal, healthy market. |
class="flex px-4 py-3 rounded-md" style="background-color: #664d03"
<span
class="pe-3 flex items-center" style="color: #ffc107"
>
<span class="relative block icon"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 512 512"><path fill="currentColor" d="M506.3 417l-213.3-364c-16.33-28-57.54-28-73.98 0l-213.2 364C-10.59 444.9 9.849 480 42.74 480h426.6C502.1 480 522.6 445 506.3 417zM232 168c0-13.25 10.75-24 24-24S280 154.8 280 168v128c0 13.25-10.75 24-23.1 24S232 309.3 232 296V168zM256 416c-17.36 0-31.44-14.08-31.44-31.44c0-17.36 14.07-31.44 31.44-31.44s31.44 14.08 31.44 31.44C287.4 401.9 273.4 416 256 416z"/></svg>
<span
style="color: #fff3cd"
><p><strong>If any market check fails:</strong></p>
- Skip Iron Condors entirely this week
- Or reduce position sizes by 50%
- Consider CSPs instead if bullish bias warranted
Quick Market Check Workflow #
1. Pull up SPY chart
2. Is price above 50 MA? → YES/NO
3. Is price above 200 MA? → YES/NO
4. Check VIX level → ____ (must be 14-25)
5. VIX term structure → Contango/Backwardation?
6. Check economic calendar → Any events in 48h?
All YES and VIX in range? → Proceed to setup
Any NO? → Skip or reduce sizePosition Setup Checks #
These ensure my Iron Condor structure is optimal.
| Check | Criteria | Why |
|---|---|---|
| ☐ | DTE: 30-45 days | Optimal theta decay window. |
| ☐ | Short strike delta: 0.14-0.18 | 82-86% probability OTM per side. |
| ☐ | Wing width: $5 | Balanced risk/reward for SPY. |
| ☐ | Total credit ≥ 12% of wing width | $5 wings → minimum $0.60 credit. |
| ☐ | Both sides collecting similar credit | Balanced condor, neutral stance. |
| ☐ | Short strikes outside recent range | Beyond 2-week high/low ideally. |
class="flex px-4 py-3 rounded-md" style="background-color: #1e3a5f"
<span
class="pe-3 flex items-center" style="color: #60a5fa"
>
<span
style="color: #e2e8f0"
><p><strong>Strike Selection Formula:</strong></p>
- Find SPY current price (e.g., $594)
- Calculate 4% below: $594 × 0.96 = $570 (short put zone)
- Calculate 4% above: $594 × 1.04 = $618 (short call zone)
- Round to nearest $5 strike
- Verify delta is 0.14-0.18
- Place wings $5 further OTM
Premium Quality Check #
| Credit Received | Wing Width | % of Width | Verdict |
|---|---|---|---|
| $0.50 | $5.00 | 10% | ❌ TOO LOW - Skip |
| $0.60 | $5.00 | 12% | ✅ Minimum acceptable |
| $0.70 | $5.00 | 14% | ✅ Good |
| $0.85 | $5.00 | 17% | ✅ Excellent |
| $1.00+ | $5.00 | 20%+ | ⚠️ Check why - high IV warning |
Risk Management Checks #
Capital preservation rules that are non-negotiable.
| Check | Criteria | Why |
|---|---|---|
| ☐ | Max loss ≤ 2% of portfolio | One trade can’t ruin me. |
| ☐ | Position count ≤ 6 open | Can actually manage them all. |
| ☐ | Not overlapping expirations too much | Max 2 positions same week expiry. |
| ☐ | Cash buffer intact (≥ 20%) | Dry powder for opportunities/adjustments. |
| ☐ | No revenge trading | Am I entering because of a prior loss? |
class="flex px-4 py-3 rounded-md" style="background-color: #842029"
<span
class="pe-3 flex items-center" style="color: #ea868f"
>
<span
style="color: #f8d7da"
><p><strong>Position Sizing Formula:</strong></p>
| Portfolio Size | Max Loss Per Trade (2%) | Max Contracts ($5 wings) |
|---|---|---|
| $25,000 | $500 | 1 contract |
| $50,000 | $1,000 | 2 contracts |
| $75,000 | $1,500 | 3 contracts |
| $100,000 | $2,000 | 4 contracts |
Remember: Max loss = (Wing width - Credit) × 100 × contracts
Execution Checks #
How to actually place the trade correctly.
| Check | Criteria | Why |
|---|---|---|
| ☐ | Order type: Limit | Never use market orders on 4-leg spreads. |
| ☐ | Start at mid-price | Then adjust $0.01-0.02 toward natural if needed. |
| ☐ | Open interest ≥ 1,000 per leg | Ensures liquidity for entry AND exit. |
| ☐ | Bid-ask spread ≤ $0.05 per leg | Tighter = better fills. |
| ☐ | Avoid first/last 30 min of day | Wider spreads, erratic pricing. |
| ☐ | Enter as single order (not legged) | All 4 legs simultaneously. |
class="flex px-4 py-3 rounded-md" style="background-color: #0f5132"
<span
class="pe-3 flex items-center" style="color: #75b798"
>
<span class="relative block icon"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 384 512"><path fill="currentColor" d="M112.1 454.3c0 6.297 1.816 12.44 5.284 17.69l17.14 25.69c5.25 7.875 17.17 14.28 26.64 14.28h61.67c9.438 0 21.36-6.401 26.61-14.28l17.08-25.68c2.938-4.438 5.348-12.37 5.348-17.7L272 415.1h-160L112.1 454.3zM191.4 .0132C89.44 .3257 16 82.97 16 175.1c0 44.38 16.44 84.84 43.56 115.8c16.53 18.84 42.34 58.23 52.22 91.45c.0313 .25 .0938 .5166 .125 .7823h160.2c.0313-.2656 .0938-.5166 .125-.7823c9.875-33.22 35.69-72.61 52.22-91.45C351.6 260.8 368 220.4 368 175.1C368 78.61 288.9-.2837 191.4 .0132zM192 96.01c-44.13 0-80 35.89-80 79.1C112 184.8 104.8 192 96 192S80 184.8 80 176c0-61.76 50.25-111.1 112-111.1c8.844 0 16 7.159 16 16S200.8 96.01 192 96.01z"/></svg>
<span
style="color: #d1e7dd"
><p><strong>Fill Optimization:</strong></p>
- Calculate mid-price for entire spread
- Submit limit order at mid
- Wait 30-60 seconds
- If not filled, adjust $0.01 toward natural (less credit)
- Repeat up to $0.05 concession
- If still not filled after $0.05 concession → reassess if trade is worth it
Management Checklist: Once In a Trade #
Daily Monitoring (Under 5 Minutes) #
| Check | Action Trigger | Response |
|---|---|---|
| ☐ | P/L ≥ 50% of max profit | CLOSE the position |
| ☐ | Loss ≥ 2× credit received | CLOSE the position |
| ☐ | DTE ≤ 21 days remaining | Tighten monitoring; close if profitable |
| ☐ | Short strike approached (within 1%) | Evaluate adjustment or close |
| ☐ | VIX spikes >25 | Consider closing all positions |
Profit Taking Rules #
When to Close for Profit:
| Scenario | Credit Received | Close When | Net Profit |
|---|---|---|---|
| 50% Target | $0.70 | Can buy back ≤ $0.35 | $35/contract |
| 70% Target | $0.70 | Can buy back ≤ $0.21 | $49/contract |
| 21 DTE Rule | $0.70 | Any profit at 21 DTE | Variable |
My Standard: Close at 50% profit. Research shows this boosts win rate from 77% to 89%.
Adjustment Decision Tree #
graph TD
A[Position Check] --> B{Which side tested?}
B -->|Put Side| C{Breach Level?}
B -->|Call Side| D{Breach Level?}
B -->|Neither| E[Hold - No Action]
C -->|Within 2% of short strike| F[Roll call spread down
for credit]
C -->|At or through short strike| G{Can roll for credit?}
G -->|Yes| H[Roll entire put spread
down and out]
G -->|No| I[CLOSE at defined loss]
D -->|Within 2% of short strike| J[Roll put spread up
for credit]
D -->|At or through short strike| K{Can roll for credit?}
K -->|Yes| L[Roll entire call spread
up and out]
K -->|No| I
style I fill:#842029,stroke:#ea868f,color:#f8d7da
style E fill:#0f5132,stroke:#75b798,color:#d1e7dd
Rolling Rules #
When Rolling is Appropriate:
| Condition | ✅ Roll | ❌ Don’t Roll |
|---|---|---|
| Credit available? | Net credit received | Would pay to roll |
| New DTE | ≤ 60 days total | Would exceed 60 days |
| Times adjusted | First or second adjustment | Third+ adjustment |
| Conviction | Still believe in range | Market regime changed |
| VIX trend | Stable or declining | Spiking higher |
Rolling the Untested Side Example:
- SPY drops toward put strike
- Call spread is safe (nearly worthless)
- Buy back call spread for $0.05
- Sell new call spread closer to money for $0.25
- Net credit: +$0.20
- Effect: Lower breakeven on tested side, more cushion
Exit Checklist: Closing Positions #
Profit Exit #
| Check | Criteria |
|---|---|
| ☐ | Profit target reached (50-70%) |
| ☐ | Order type: Limit (buy to close) |
| ☐ | Close as single 4-leg order |
| ☐ | Log the trade in journal |
| ☐ | Calculate next entry opportunity |
Loss Exit #
| Check | Criteria |
|---|---|
| ☐ | Loss limit reached (2× credit or 2% portfolio) |
| ☐ | Accept the loss—no revenge trading |
| ☐ | Order type: Limit (buy to close) |
| ☐ | May need to pay above mid-price to exit |
| ☐ | Log the trade with lessons learned |
| ☐ | Wait 24h before next entry (cooling off) |
21 DTE Exit #
| Check | Criteria |
|---|---|
| ☐ | Position has ≤ 21 DTE |
| ☐ | Close if ANY profit exists |
| ☐ | If underwater, evaluate: close vs. hold to expiration |
| ☐ | If holding, increase monitoring to daily |
Hard NO Rules #
I NEVER Do These:
| Rule | Why |
|---|---|
| ❌ Trade when VIX > 28 | Trending markets destroy condors |
| ❌ Trade when VIX < 12 | Premiums too thin for the risk |
| ❌ Enter within 48h of FOMC/CPI/Jobs | Gap risk too high |
| ❌ Use market orders | 4-leg spread fills will be terrible |
| ❌ Leg into the trade | Execute all 4 legs simultaneously |
| ❌ Add to losing positions | Throwing good money after bad |
| ❌ Hold through expiration week if tested | Gamma risk accelerates |
| ❌ Have more than 6 open condors | Can’t manage effectively |
| ❌ Risk more than 2% per trade | One loss shouldn’t matter |
| ❌ Trade to “make back” a loss | Revenge trading = poor decisions |
Pre-Trade Verification Form #
Use this form before every trade:
═══════════════════════════════════════════════════════
IRON CONDOR PRE-TRADE CHECKLIST
═══════════════════════════════════════════════════════
Date: ____________ Time: ____________
MARKET CONTEXT
[ ] VIX Level: _______ (14-25 required)
[ ] SPY vs 50 MA: Above / Below
[ ] SPY vs 200 MA: Above / Below
[ ] Major events in 48h: None / _______________
[ ] VIX term structure: Contango / Backwardation
POSITION SETUP
[ ] Underlying: SPY @ $_______
[ ] Expiration: _______ (DTE: _____)
[ ] Put spread: Short $_____ / Long $_____
[ ] Call spread: Short $_____ / Long $_____
[ ] Total credit: $_______ per contract
[ ] Credit as % of width: _______%
[ ] Short put delta: _______
[ ] Short call delta: _______
RISK MANAGEMENT
[ ] Max loss per contract: $_______
[ ] Number of contracts: _______
[ ] Total max loss: $_______
[ ] Portfolio %: _______% (max 2%)
[ ] Current open condors: _____ (max 6)
EXECUTION
[ ] Order type: LIMIT
[ ] Starting price: $_______
[ ] Open interest adequate: Yes / No
[ ] Avoiding first/last 30 min: Yes / No
FINAL APPROVAL
[ ] All checks passed
[ ] I would be okay losing the max loss
[ ] This is not revenge trading
[ ] I have a management plan
TRADE AUTHORIZED: YES / NO
═══════════════════════════════════════════════════════Post-Trade Logging #
After every trade (win or loss), log:
═══════════════════════════════════════════════════════
IRON CONDOR TRADE LOG
═══════════════════════════════════════════════════════
ENTRY
Date: ____________ SPY Price: $_______
Expiration: _______ VIX at entry: _______
Put spread: $_____/$_____ for $_______ credit
Call spread: $_____/$_____ for $_______ credit
Total credit: $_______ × _____ contracts = $_______
Max loss: $_______
EXIT
Date: ____________ SPY Price: $_______
Days held: _______ VIX at exit: _______
Exit price: $_______
Profit/Loss: $_______
Result: WIN / LOSS / SCRATCH
NOTES
What worked: _________________________________
What didn't: _________________________________
Lesson learned: ______________________________
═══════════════════════════════════════════════════════Quick Reference Card (Print This) #
IRON CONDOR QUICK RULES
ENTRY:
- VIX: 14-25
- DTE: 30-45 days
- Delta: 0.14-0.18 per side
- Credit: ≥ 12% of width
- Max risk: 2% of portfolio
MANAGEMENT:
- Close at 50% profit
- Close at 21 DTE if profitable
- Stop at 2× credit loss
- Roll untested side for credit only
HARD NOs:
- No VIX > 28 or < 12
- No events within 48h
- No market orders
- No more than 6 positions
- No revenge trading
Related Resources #
Complete Your System:
📖 Main Iron Condor Strategy Guide - The complete strategy and research
📊 Iron Condor Workflow Guide - Daily/weekly routines and adjustment details
📄 Iron Condor 1-Page SOP - Everything on one printable page
Disclaimer: This checklist is based on my personal trading rules and research. Options trading involves significant risk. Always do your own analysis and never risk money you can’t afford to lose.