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Backtest an iron condor

An iron condor sells an out-of-the-money call and put and buys further wings on both sides. The wings cap the loss on a big move and cut the margin needed. It is a favourite for traders who want defined risk.

Choose the strikes your way

Pick each strike by distance from the ATM strike, or by premium, such as the call and put closest to ₹40 with wings closest to ₹10. Premium-based strikes keep the risk similar when volatility changes.

Manage it

Add a stop loss per leg or for the whole position, a profit target, a fixed exit time, and re-entries. Elite plans add quick adjustments, which shift or roll a leg when the index moves.

Questions

Is an iron condor safer than a short strangle?

Its largest loss is capped by the wings, so a gap does less damage. The wings also cost premium, so it usually earns less. A backtest shows that trade-off on real prices.

Can I see the payoff before running it?

Yes. The option payoff tool draws the payoff at expiry for any set of legs.

Related guides

Backtest a short straddle the way you would trade it: Backtest a short straddle on NIFTY, BANKNIFTY or SENSEX. Test entry times, per-leg stop losses, move-to-cost and re-entries, with charges included.
Test option selling before you risk money on it: Test option selling strategies on NIFTY, BANKNIFTY, SENSEX and stock options before you risk money: straddles, strangles, spreads, condors and re-entries.
Backtest NIFTY option strategies on minute data: Backtest NIFTY weekly and monthly option strategies on 1-minute data from 2019. Straddles, strangles, spreads and condors with stop losses, re-entries and charges.

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