The “Iron Condor” is a negative Vega option spread, meaning that it benefits when the IV on the underlying traded is going down. This usually happens if the underlying price is rising. Right now the market is somewhat bullish. With a negative Vega spread this could be the right time to use the “Iron Condor” strategy, but make sure that the IV still has room to drop. If IV hits support, then watch out because it might just rise on you and this will really hurt the Condor.

When the volatility is going down and the stock markets are moving in an upward trend, you could say that this is the right time to use the condor strategy. The Condor is a negative Vega option spread, meaning that you can make more money by using the Condor when the volatility is moving downward.

While the volatility is declining and the market is going up, one could believe that this would be the right time to trade the Iron Condor. The Iron Condor benefits by a drop in the volatility because the Iron Condor is a negative Vega option spread. If you are not sure what negative Vega is, then you’d benefit by visiting www.sjoptions.com and watching their free videos on the Option Greeks.