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.