Forget Implied Volatility. At Zero DTE, the Price Tells You the Move.

SPX

The speaker sets up an iron condor by selling out-of-the-money puts and calls and buying in-the-money puts and calls. The strategy is based on the market's implied range, with the goal of collecting a credit. The speaker adjusts the size of the trade based on volatility and aims to take profits at 50% of the credit. The strategy is executed with zero DTE options, and the speaker plans to buy back the position if filled at a certain price.

Upside Skew and Market Regime

The speaker emphasizes that the current year is characterized by an upside skew, indicating a market regime where investors are pricing in higher potential for upward movement. This skew is a key factor in the speaker's trading strategy, particularly in options strategies like iron condors and vertical spreads.

What is the SPX iron condor strategy?

The SPX iron condor strategy involves selling out-of-the-money puts and calls while buying in-the-money puts and calls. The speaker sets up the trade with zero DTE options, aiming to collect a credit based on the market's implied range. The size of the trade is adjusted based on volatility, and the speaker plans to take profits at 50% of the credit.

TakeawayThe strategy is based on the market's implied range and volatility, with the goal of collecting a credit through a zero DTE iron condor.