Options Whale · Strategy guide

Iron condors around earnings

Four legs, one expiration

A short iron condor combines a put credit spread below the stock and a call credit spread above it, with all four options sharing an expiration. The short strikes define the central range; the purchased options provide protective wings. The position receives a net credit.

Expiration risk

For equal-width wings and the standard contract multiplier, modeled maximum profit is the entry credit times the multiplier. Modeled maximum loss is wing width minus credit, times the multiplier. These figures assume intact protective legs and expiration settlement under the stated model. Fees and slippage reduce realized results.

Early assignment can temporarily create stock exposure. Gaps around earnings can move the stock beyond a protective wing. Defined modeled risk does not make a losing trade unlikely.

Why a large implied move is insufficient

An implied move above the historical median is a comparison with a past sample, not a guarantee that the next report will stay inside the range. Tail outcomes, market conditions, strike liquidity, and uncertainty about the earnings date all matter.

Options Whale constructs legs from existing contracts and checks liquidity, historical evidence, and risk before scoring. If those checks fail, the result can be NO_SETUP.

Read implied versus actual moves, IV crush, and the research methodology. Use the screener to inspect conditions rather than treating a strategy label as an instruction.

Source: OCC's Options Industry Council: condors and butterflies.