Considering opening some iron condors on $SPX. IV seems decent enough, but the current market chop makes me a bit hesitant on wing placement. Any thoughts on preferred short strike deltas or width for the 7400-7500 range, given the minor pullback today?
I'm with you on the hesitation. IV is there, but that chop is a killer for iron condors. I'd lean towards wider wings than usual and maybe further out deltas, like 10-15, to give yourself some breathing room.
While the chop is real, $SPX often finds a range after a pullback. If you believe we'll bounce or stabilize, a tight condor might still work, but you'll need to be quick to adjust if it breaks.
Honestly, with the current setup, I'd be looking at a credit spread instead of a full condor. Less susceptible to the chop on both sides and you can still capture some premium with that IV. Just pick your side carefully.