Not all stocks are suitable for iron condor trading. Some have gap risk that explodes your position. Others have so little volume that you can't close when you need to.

The best iron condor stocks share specific characteristics:

High implied volatility (rich premiums)
Liquid options (tight bid/ask spreads)
Moderate realized volatility (not too wild intraday)
Predictable earnings (or far from earnings)
Good price levels (not extended rallies)

This guide shows you exactly how to screen for iron condor candidates—and gives you my top 10 picks for 2025.

Screen for condor candidates: Use the Strategy Analyzer to identify liquid underlyings with good IV characteristics and analyze individual legs of your iron condor.

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Iron Condor Stock Screening Criteria

Criterion 1: Implied Volatility (IV) Level

The Sweet Spot: 40-70th IV Percentile

Why?

IV Percentile	Premium	Risk	Best For
0-25th (Low)	Weak premiums	Low crash risk	Skip—not worth it
25-50th (Normal)	Good premiums	Normal risk	Okay, but not ideal
50-75th (Elevated)	Rich premiums	Manageable risk	IDEAL
75-100th (Extreme)	Excellent premiums	High IV crush risk	Risky; only wide width

Example:

SPY at 50th percentile IV:
  Sell 35-delta calls, collect $0.50 credit
  Good trade setup
  
SPY at 75th percentile IV (VIX spiked):
  Sell 35-delta calls, collect $0.80 credit
  Looks amazing, but IV crush is coming
  When IV normalizes, trade value drops
  Not worth the risk

How to Check IV:

Most brokers show "IV Rank" or "IV Percentile" in options chain
Or use cboe.com to see IV levels
Compare current IV to 52-week range

Criterion 2: Option Liquidity (Bid/Ask Spreads)

Requirement: Bid/Ask Spread < 1 Cent

Why?

Good liquidity (Bid $0.45, Ask $0.50):
  Spread: $0.05
  4-leg iron condor setup
  Total slippage: ~$0.20 across 4 legs
  Acceptable

Poor liquidity (Bid $0.30, Ask $0.70):
  Spread: $0.40
  4-leg iron condor setup
  Total slippage: ~$1.60 across 4 legs
  Kills profitability

How to Check Liquidity:

Open options chain on your broker
Look at bid/ask spreads for calls and puts
Avoid if spreads are wide (more than 2-3 cents)
Liquid stocks: SPY, QQQ, IWM, XLK, XLF, XLV, etc.

Criterion 3: Earnings Dates (Avoid!)

Rule: 30+ Days Until Next Earnings

Why?

Earnings within 30 days = Elevated vol crush risk

Scenario:
  You sell iron condor 45 DTE
  Earnings in 14 days
  Stock gaps $5 overnight on earnings
  Both sides of your condor breached
  Max loss realized before management time
  
Better: Wait until earnings has passed

Where to Check:

Earnings dates on Yahoo Finance, Earnings Whispers, or your broker

Criterion 4: Realized Volatility (Historical Moves)

Requirement: Average True Range (ATR) 1-3% Daily

Why?

Daily ATR	Characteristic	IC Risk
< 0.5%	Extremely stable	Too boring; premiums weak
0.5-1%	Stable	Good, moderate premiums
1-3%	Normal stock volatility	IDEAL for iron condors
3-5%	High volatility	Risky; position likely to breach
> 5%	Extreme volatility	Too risky for standard IC

Example:

SPY average daily move: 0.8%
  Standard 30-DTE iron condor width: $4 (±2% range)
  Risk: 2.5 standard deviations (very safe, ~99.4% prob of profit)
  
TSLA average daily move: 3.5%
  Would need width: $15+ (±3.5% range)
  Capital risk: Too high
  Better: Skip TSLA for standard iron condors

How to Calculate ATR:

Most charting platforms show ATR automatically
14-period ATR is standard
Divide by current stock price to get %

Criterion 5: Current Price Trend

Requirement: Not in Extended Rally or Breakdown

Why?

NVDA in downtrend, down 30% from highs:
  IV elevated, momentum negative
  Selling calls would miss downside
  Selling puts risky (could collapse further)
  Result: Iron condor gets breached on both sides
  
MSFT in mild uptrend, up 20% YTD:
  IV normal, trend is gradual
  Room for 5%+ move in either direction
  Iron condor width reasonable
  Result: Condor fits between support and resistance

How to Check:

Look at 6-month chart
Is stock near 52-week high? (risky)
Is stock near 52-week low? (risky)
Is stock in middle 40-60% of 52-week range? (better)

Iron Condor Screening Formula

Combine all criteria:

Iron Condor Candidate Checklist:

✓ IV Rank: 40-75th percentile (rich premiums, not extreme)
✓ Bid/Ask spread: < $0.03 for each option leg
✓ Earnings: 30+ days away (no binary event risk)
✓ Average daily range: 1-3% (manageable volatility)
✓ Price position: Not extended (40-60% of 52-week range)
✓ Liquidity: 1M+ shares traded daily
✓ Stock price: $20+ (avoid penny stocks)

Score: Each criterion = 1 point
Target: 6-7 points (most criteria met)

Top 10 Iron Condor Stocks for 2025

Based on the screening criteria above, here are my top candidates:

1. SPY (S&P 500 ETF)

Metric	Rating
Liquidity	Perfect
IV Percentile	50-60 (normal)
Bid/Ask Spread	<$0.01 (best in market)
Earnings Risk	N/A (no earnings)
Daily Move (ATR)	0.8% (ideal)
Current Price Trend	Neutral to up
Best DTE for IC	30-45 days

Why: Most liquid options in the world. Premiums always available. Bid/ask spreads are essentially free. Perfect for learning iron condors.

Typical Setup:

30-45 DTE
$4 width ($446/$454 range on $450 SPY)
Collect $0.40-0.50 credit
70%+ probability of profit

2. QQQ (NASDAQ 100 ETF)

Metric	Rating
Liquidity	Excellent
IV Percentile	55-65 (elevated but stable)
Bid/Ask Spread	<$0.02 (excellent)
Earnings Risk	N/A (no earnings)
Daily Move (ATR)	1.2% (above SPY, but manageable)
Current Price Trend	Often trending
Best DTE for IC	30-45 days

Why: Tech-heavy, slightly higher volatility than SPY. Good premiums. Still highly liquid.

Typical Setup:

30-45 DTE
$3-4 width ($397/$403 range on $400 QQQ)
Collect $0.35-0.50 credit
68-72% probability of profit

3. IWM (Russell 2000 Small-Cap ETF)

Metric	Rating
Liquidity	Good
IV Percentile	60-70 (elevated)
Bid/Ask Spread	<$0.05 (acceptable)
Earnings Risk	N/A (no earnings)
Daily Move (ATR)	1.5% (moderate)
Current Price Trend	Rotating sector
Best DTE for IC	30-45 days

Why: Higher IV means richer premiums than SPY/QQQ. Still liquid enough for retail traders.

Typical Setup:

30-45 DTE
$3-4 width ($190/$194 range on $192 IWM)
Collect $0.40-0.60 credit
65-70% probability of profit

4. MSFT (Microsoft)

Metric	Rating
Liquidity	Excellent
IV Percentile	50-60 (normal to elevated)
Bid/Ask Spread	<$0.02
Earnings Risk	Q1 (Jan), Q2 (Apr), Q3 (Jul), Q4 (Oct)
Daily Move (ATR)	1.0% (stable)
Current Price Trend	Long-term uptrend (be careful of width)
Best DTE for IC	30-45 days (avoid 2 weeks pre-earnings)

Why: Mega-cap tech with excellent liquidity. Options are always available. Stable company means predictable moves.

Typical Setup:

30-45 DTE
$5-6 width (MSFT is higher priced, so wider width in $ terms)
Collect $0.30-0.50 credit
65-70% probability of profit

Caution: Check earnings calendar. Avoid 3 weeks before earnings.

5. AAPL (Apple)

Metric	Rating
Liquidity	Excellent
IV Percentile	45-55 (normal)
Bid/Ask Spread	<$0.02
Earnings Risk	Q1 (Jan), Q2 (Apr), Q3 (Jul), Q4 (Oct)
Daily Move (ATR)	1.2% (slightly elevated)
Current Price Trend	Range-bound
Best DTE for IC	30-45 days

Why: Liquid, stable, and familiar. Many retail traders already hold AAPL shares.

Typical Setup:

30-45 DTE
$4-5 width
Collect $0.30-0.45 credit
65-70% probability of profit

6. XLK (Technology ETF)

Metric	Rating
Liquidity	Good
IV Percentile	55-65 (elevated for sector)
Bid/Ask Spread	<$0.03
Earnings Risk	N/A (ETF of multiple companies)
Daily Move (ATR)	1.0% (stable)
Current Price Trend	Tech sector rotation
Best DTE for IC	30-45 days

Why: Sector exposure (MSFT, AAPL, NVDA, INTC) without single-company earnings risk. Diversified.

Typical Setup:

30-45 DTE
$2-3 width
Collect $0.35-0.50 credit
70%+ probability of profit

7. XLF (Financial Sector ETF)

Metric	Rating
Liquidity	Good
IV Percentile	50-60 (normal)
Bid/Ask Spread	<$0.03
Earnings Risk	N/A (ETF of multiple companies)
Daily Move (ATR)	1.1% (stable)
Current Price Trend	Sector dependent (rates-sensitive)
Best DTE for IC	30-45 days

Why: Banking sector exposure. Good premiums from sector volatility. Liquid options.

Typical Setup:

30-45 DTE
$2-3 width
Collect $0.35-0.50 credit
70%+ probability of profit

8. GLD (Gold ETF)

Metric	Rating
Liquidity	Excellent
IV Percentile	40-50 (low, but consistent)
Bid/Ask Spread	<$0.02
Earnings Risk	N/A (commodity ETF)
Daily Move (ATR)	0.7% (very stable)
Current Price Trend	Dollar-dependent
Best DTE for IC	30-45 days

Why: Gold moves predictably, highly liquid, less affected by earnings. Good for portfolio diversification (inverse correlation with equities).

Typical Setup:

30-45 DTE
$1-2 width (gold lower-priced, so lower $ width)
Collect $0.25-0.40 credit
70-75% probability of profit

9. EEM (Emerging Markets ETF)

Metric	Rating
Liquidity	Good
IV Percentile	50-60 (normal)
Bid/Ask Spread	<$0.05 (acceptable)
Earnings Risk	N/A (ETF of multiple companies)
Daily Move (ATR)	1.3% (moderate)
Current Price Trend	Sector/macro dependent
Best DTE for IC	30-45 days

Why: International diversification, good premiums, liquid options. Different volatility profile than US markets.

Typical Setup:

30-45 DTE
$1-2 width
Collect $0.25-0.35 credit
65-70% probability of profit

10. TLT (Bond ETF)

Metric	Rating
Liquidity	Good
IV Percentile	40-50 (lower, stable)
Bid/Ask Spread	<$0.05
Earnings Risk	N/A (bond ETF)
Daily Move (ATR)	0.5-1.0% (very stable)
Current Price Trend	Rate-dependent
Best DTE for IC	30-45 days

Why: Bonds move in opposite direction to stocks. Hedge portfolio during equity volatility. Very stable, predictable moves.

Typical Setup:

30-45 DTE
$0.50-1.00 width (bonds have lower volatility)
Collect $0.15-0.25 credit
75%+ probability of profit (but lower premium)

Calculate Your Potential Income

Before we look at stocks to avoid, see how much you could earn with these setups:

Monthly Income Calculator

Estimate income from selling covered calls or cash-secured puts

Strategy

Risk Level

Capital ($)

Ticker

$180.00

DTE (days)

IV (%)

Fees per contract ($)

Monthly Income

$744.20

Annual Yield

50.3%

Breakeven

$172.55

Buffer

4.1%

Strike: $183.60

Premium/contract: $745.20

Contracts: 1

Open in Strategy Analyzer

Estimates based on simplified Black-Scholes. Actual premiums depend on live market conditions, liquidity, and bid-ask spreads. Verify in Strategy Analyzer.

Stocks to AVOID for Iron Condors

Stock Characteristic	Why It's Bad	Examples
Pre-earnings (3 weeks before)	Gap risk overnight	Any stock in earnings month
Extreme IV (> 80 percentile)	IV crush eats profits	MSTR (Bitcoin tracking)
Illiquid options (spread > $0.10)	Can't exit cleanly	Penny stocks, micro-cap
High daily volatility (ATR > 5%)	Breaches too easy	TSLA, GME, MEME stocks
Extended rally (52-week high)	Momentum exhaustion risk	Recently IPO'd stocks
Extended breakdown (52-week low)	Crash risk high	Distressed companies
News/event driven	Unpredictable gaps	Pre-split announcement stocks

Seasonal Iron Condor Patterns

Q1 (Jan-Mar): Tech and Growth Strength

Best candidates: QQQ, MSFT, AAPL, XLK
IV trend: Typically low early Jan (post-holiday), then spikes
Strategy: Wait for post-earnings IV spike

Q2 (Apr-Jun): Broad Market, Earnings Season Peak

Best candidates: SPY, IWM, XLF, XLV
IV trend: Elevated mid-quarter (earnings cluster), drops post-earnings
Strategy: Enter early quarter, adjust before earnings

Q3 (Jul-Sep): Summer Doldrums

Best candidates: IWM, Treasuries (TLT), GLD
IV trend: Often lower in summer (slower markets)
Strategy: Widen positions, lower premiums expected

Q4 (Oct-Dec): Volatility Spikes, Year-End

Best candidates: SPY, QQQ, GLD, EEM
IV trend: Often elevated mid-quarter (seasonal volatility), spikes Nov-Dec
Strategy: Tight width positions, defensive setup

Practical Screening Workflow

Step 1: Start with liquid ETFs

Restrict to: SPY, QQQ, IWM, GLD, TLT
(These are always tradable, great for learning)

Step 2: Check IV Rank (% vs 52-week range)

Only trade if IV Rank 40-75%

IV Rank = (Current IV - 52-week Low IV) / (52-week High IV - 52-week Low IV)
Example: IV at 30, 52-week range 15-50
IV Rank = (30-15) / (50-15) = 43% ✓ Good to trade

Step 3: Verify Bid/Ask Spreads

Look at 30-45 DTE strikes:

Calls: Bid/ask spread < $0.03
Puts: Bid/ask spread < $0.03

Step 4: Check Earnings Calendar

Mark earnings dates (30+ days clear required)

Step 5: Screen for Technical Setup

Support level (below your put short strike)
Resistance level (above your call short strike)
Current price: Middle 50% of range

Step 6: Size Your Position

Based on width and max loss tolerance

The Bottom Line: Best Stocks for Iron Condors

Iron condors work best on:

✅ Liquid ETFs (SPY, QQQ, IWM)
✅ High-IV environments (50-75 percentile)
✅ Post-earnings (30+ days until next event)
✅ Stable, range-bound markets (not extended trends)
✅ Multi-leg options chains (tight spreads)

Start with SPY or QQQ. Master the mechanics. Then expand to sector ETFs (XLK, XLF, XLV) and individual stocks (MSFT, AAPL).

Avoid penny stocks, pre-earnings, and extreme volatility. Stick to the screened candidates above, and your iron condor probability of profit will stay at 65-75%+.

Next Steps

Ready to find your first iron condor candidate?

First: Open your broker's options screener or use free tools like FinViz.

Second: Filter for IV Rank 40-75% and bid/ask spreads <$0.03.

Third: Paper trade on SPY for 2-3 cycles to master the mechanics.

Fourth: When confident, trade one real iron condor per quarter.

Best Stocks for Iron Condors: Selection Criteria & Screening

Iron Condor Stock Screening Criteria

Criterion 1: Implied Volatility (IV) Level

Criterion 2: Option Liquidity (Bid/Ask Spreads)

Criterion 3: Earnings Dates (Avoid!)

Criterion 4: Realized Volatility (Historical Moves)

Criterion 5: Current Price Trend

Iron Condor Screening Formula

Top 10 Iron Condor Stocks for 2025

1. SPY (S&P 500 ETF)

2. QQQ (NASDAQ 100 ETF)

3. IWM (Russell 2000 Small-Cap ETF)

4. MSFT (Microsoft)

5. AAPL (Apple)

6. XLK (Technology ETF)

7. XLF (Financial Sector ETF)

8. GLD (Gold ETF)

9. EEM (Emerging Markets ETF)

10. TLT (Bond ETF)

Calculate Your Potential Income

Monthly Income Calculator

Stocks to AVOID for Iron Condors

Seasonal Iron Condor Patterns

Q1 (Jan-Mar): Tech and Growth Strength

Q2 (Apr-Jun): Broad Market, Earnings Season Peak

Q3 (Jul-Sep): Summer Doldrums

Q4 (Oct-Dec): Volatility Spikes, Year-End

Practical Screening Workflow

The Bottom Line: Best Stocks for Iron Condors

Next Steps

Start simple, stay disciplined, and let the odds work for you.

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