Oct 21 2020 10 mins 7
As you widen the wings of an iron condor, buying power increases exponentially while credit plateaus. The inflection point (in SPY) where we want to trade is around the $20-wide long wings because that brings us closest to ⅓ the width of the iron condor. For other underlyings in general, when the credit reaches ⅓ the width of the iron condor, that is a signal that credit is beginning to reach its maximum while risk keeps increasing.
