Disclaimer: The below information is intended to describe hypothetical scenarios and should not be considered trading or investment advice.

Condition: This strategy works best when a stock is above its Hedge Wall, near the Absolute Gamma level (within 2 pct), and within a narrow corridor between the stock’s Call Wall and Put Wall.

• Consider putting on an iron condor by selling a strangle with both the sold call and put 1pct above and below current price level, and buying a wider strangle
• Profit should extend on either side of the strangle up to 3pct away from the current strike price, with risk capped

Pro tip: To check for stocks that meet the criteria for this trade, search for a stock that has high IV based on either a recent move or expected event. It may also be worth checking if the stock is flagged by the VRP Scanner, or if it has a particularly high IV Rank.

Statistics: Check out SpotGamma’s Statistics on how our key levels have performed for the SPX using data from 2018 - 2024.

For more information, check out our videos on using the Equity Hub to trade:

SpotGamma Pro and SpotGamma Alpha subscribers can access Equity Hub™ here.  

Equity Hub’s Total Open Interest Model can be access by SpotGamma Essential and Alpha subscribers here.

Equity Hub’s Synthetic Open Interest Model can be access by SpotGamma Alpha subscribers here.
 

Support articles explain how Equity Hub works. The Synthetic Open Interest Model and Total Open Interest Model product pages shows how traders apply it in real market conditions — with concrete examples and a clear view of how it fits into daily trade decisions.

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