Monthly 45-DTE iron condor
This positional iron condor sells NIFTY monthly options about 45 days before expiry: the call and put near 0.30 delta, protected by wings bought near 0.16 delta. It closes at half the maximum profit, at a loss equal to the credit, or 15 days before expiry. The aim is a defined-risk way to collect monthly time decay with a fixed, mechanical playbook.How it trades
Results
PRE-BUILT · DEFAULTSWhere it made and lost money
Thirteen trades leave every condition below the eight trades needed for a firm reading, but one split is stark. Of the five condors held while NIFTY fell more than 1%, four lost, together ₹41,805 before costs: 30-delta short puts sit fairly close to the market, and a fall pushes them in the money while rising volatility inflates their price, so the 100% stop was hit. The six held while NIFTY rose more than 1% made ₹18,764, and the two in flat markets made ₹17,722. The condor's lopsided exposure to falls, typical of index options with put skew, drove the year's loss.
About this strategy
- On the first trading day a NIFTY monthly expiry is 42 to 48 calendar days away, at 15:00, look at that monthly's option chain.
- Buy the call and put closest to 0.16 delta first; if either is missing, skip the month.
- Then sell the call and put closest to 0.30 delta, one lot of each leg.
- Take profit once the condor has earned 50% of the net credit; stop out when the loss equals 100% of the credit.
- Otherwise close at 15:00 on the last trading day with at least 15 days to expiry.
- Only one condor at a time; the next monthly's 45-day window starts the next trade.
Why traders use it
A 45-day condor collects a good share of the month's time value while avoiding the last weeks, when gamma makes positions jumpy. Selling 30-delta options gives a richer credit than far-out strikes, and the 16-delta wings cap the worst case and cut margin. Taking profit at half the credit and leaving 15 days early are well-known management rules meant to keep winners frequent and avoid letting a good trade turn bad near expiry.
The year in plain words
From 1 Oct 2025 to 30 Sep 2026 on NIFTY the condor traded 13 times, won seven and lost ₹5,318 before costs, a profit factor of 0.91. After ₹20 per order and bid-ask slippage on four legs per trade, the loss grew to ₹10,012. Six trades reached the 50% target and four hit the stop, while three closed on the days-to-expiry rule. Average losses of about ₹10,200 outweighed average wins of about ₹8,000. February 2026 lost ₹14,193 and March ₹13,003, and the last two trades were also stopped; the best month, June 2026, made ₹10,715.
What the settings do
Risks
- The 30-delta shorts are close enough to the market that an ordinary monthly move can threaten them.
- A stop at 100% of the credit means each loss is larger than each win at the 50% target.
- Positions are held for about three weeks with full exposure to overnight gaps.
- Second-month NIFTY options are less liquid than near expiries, so live fills can be wider.
Who it suits
Traders learning defined-risk monthly option selling who prefer a fixed set of management rules, have hedged-position margin and can hold positions for several weeks.
Questions traders ask
What is a 45 DTE iron condor?
It is an iron condor opened about 45 days before the options expire. Sold options near the market collect premium, and cheaper options bought further out cap the loss. Trades are usually closed well before expiry, here at 15 days left.
Is the 45 DTE iron condor profitable on NIFTY?
Not in this backtest. From 1 Oct 2025 to 30 Sep 2026 it lost ₹5,318 before costs and ₹10,012 after ₹20 per order and bid-ask slippage, over 13 trades. Statutory charges were excluded. Past results do not guarantee future ones, and 13 trades is a small sample.
Why 30-delta shorts and 16-delta wings?
Thirty-delta options give a sizeable credit with a reasonable cushion, and 16-delta wings, about one standard deviation out, cap the risk at a moderate cost. Narrower spacing collects less net premium; wider spacing lowers the cost of wings but raises the maximum loss.
Which expiry does it trade on NIFTY?
NIFTY monthly options, which expire on the last Tuesday of the month. The trade opens in the window around 45 calendar days before the chosen monthly and closes no later than 15 days before it.