2-DTE condor, move untested
This weekly NIFTY iron condor is opened two trading sessions before expiry with both short strikes about 375 index points from the price and 150-point wings. When NIFTY runs 150 points toward one side, the spread on the other, untested side is pulled in to sit 375 points from the new price, collecting fresh premium. If the market goes through a short strike, everything is closed.How it trades
Results
PRE-BUILT · DEFAULTSWhere it made and lost money
In this test the condor did what condors do: it earned when NIFTY stayed put and lost when it moved. The 29 trades in which NIFTY stayed within ±1% while held made ₹16,689 before costs with a 79% win rate. The 11 weeks in which NIFTY fell more than 1% lost ₹5,816, as the put side was breached and the adjustment pulled the call side down just before further swings. Entries during a 20-day downtrend lost ₹11,911, against a ₹13,920 gain in uptrends. Weeks that started after India VIX closed above 14.5 lost ₹4,261 and won only a third of the time, and calm evenings below 11.5 lost ₹4,249 over 14; only the normal VIX band made money, ₹10,519 over 23 trades.
About this strategy
- At 09:30, two trading sessions before the nearest NIFTY weekly expiry, take the expiry's forward price as the reference.
- Sell the call about 375 points above it and the put about 375 points below, and buy wings 150 points beyond each short, one lot each.
- Every minute, measure how far NIFTY has moved since entry or the last adjustment.
- If it has moved 150 points toward one short, buy back the spread on the opposite side and sell a new one 375 points from the current price, but only if that brings it closer.
- Allow at most two adjustments, and none before 09:20 in any session.
- Close everything if NIFTY trades through either short strike.
- Otherwise hold to 15:15 on expiry day (Tuesday); there is no profit target.
Why traders use it
Short-dated condors collect fast time decay over the last few sessions while the wings cap the worst case. When the market trends, the untested side loses most of its value and stops earning. Rolling it closer to the price collects new premium that cushions the losing side, a common way traders try to repair a condor rather than close it. Working in fixed index points keeps the rules easy to follow.
The year in plain words
On NIFTY from 1 Oct 2025 to 30 Sep 2026 with default settings, the strategy made 52 weekly trades and won 60% of them, making a thin ₹2,010 before costs, a profit factor of 1.06. Average losses (₹1,654) were larger than average wins (₹1,185), and the worst single week lost ₹4,095. Twenty-nine trades ran to expiry and 23 were closed because a short went in the money. Six months were positive, with November best at ₹5,801. Four legs, plus four more fills per adjustment, make it costly: after ₹20 per order and bid-ask slippage the small profit becomes a ₹21,156 loss.
What the settings do
Risks
- Pulling the untested side closer narrows the range, so a reversal can breach the rolled side as well.
- The position is held over a weekend, so gaps on Monday can jump past the short strikes before any check runs.
- Each adjustment adds four fills, which raises costs quickly on a strategy with a thin edge.
- Fixed point distances shrink in percentage terms as NIFTY rises, so the same settings take more risk at higher index levels.
Who it suits
Positional option sellers who are comfortable carrying a hedged position over the weekend, want written rules for adjusting a condor, and have margin for a four-leg spread.
Questions traders ask
What does moving the untested side of an iron condor mean?
When the market moves toward one short strike, the spread on the other side loses value and contributes little. Closing it and selling a new spread closer to the current price collects extra premium, which offsets some of the loss on the tested side. The trade-off is a narrower range.
Is this weekly iron condor adjustment strategy profitable?
Not after costs in this test. On NIFTY from 1 Oct 2025 to 30 Sep 2026 it made ₹2,010 before costs but lost ₹21,156 after ₹20 per order and bid-ask slippage (statutory charges not included), with a maximum drawdown of ₹14,047 before costs. Past results do not guarantee future ones.
When is the condor entered if NIFTY expires on Tuesday?
Two trading sessions before the Tuesday expiry, which is usually the Friday before. The position therefore carries through a weekend. Holidays shift the entry day so that it is always two sessions ahead of expiry.
Why close everything when a short strike is breached?
Once the index trades through a short strike, that option is in the money and the spread can quickly move toward its maximum loss. Exiting at that point caps the damage instead of hoping for a reversal.