ACondor has announced an automated options trading service for tastytrade accounts featuring a dedicated earnings strategy. The engine uses implied volatility and expected-move criteria to select defined-risk iron condor trades and manage positions around company reports.
-- ACondor has announced its automated options trading service for traders seeking a rules-based way to approach earnings-related implied volatility (IV). Its dedicated Earnings IV-Crush engine is designed to sell defined-risk iron condors ahead of selected company reports, then manage positions through the announcement and assess them for an exit the following morning.
Further details are available at https://acondor.com/how-it-works
The approach addresses a specific challenge for options traders during earnings season. Implied volatility often rises ahead of a report as uncertainty is priced into options, then can fall sharply once the announcement is public. Broker and educator Charles Schwab recently explained that this IV crush can reduce an option’s value even when the underlying stock moves in the trader’s expected direction. However, a sharp share-price move can still overwhelm the benefit of falling volatility, making event trades risky. It is this risk factor that ACondor aims to address.
The company's new service connects to tastytrade accounts and applies predefined entry, position-sizing, and exit rules rather than relying on discretionary decisions made during a fast-moving earnings session. The earnings engine only considers candidates when IV Rank is at least 50, indicating that current implied volatility is in the upper half of its trailing one-year range. It also screens for stocks with a beta no higher than 1.3 and an implied earnings move of no more than 8%, excluding names that meet its criteria for unusually high event risk.
Strike selection is tied to the move already priced into the options market. ACondor places short strikes at the farther distance of the 16-delta level or 1.3 times the implied move, with protective wings set $10 wide. The strategy is entered only when the credit reaches at least one-third of the wing width, and the selected expiration must fall at least seven days after the report. After the announcement, the bot checks the position the following morning and closes it if the configured profit target has been reached; otherwise, it transfers the trade to its standard management rules.
Furthermore, ACondor applies additional account-level controls, including per-trade risk limits, daily and weekly loss circuit breakers, market-volatility halts and restrictions on new positions during selected macroeconomic announcements. Its defined-risk iron-condor structure uses protective options to cap the position’s modeled loss at expiration, although losses, execution risks and early-assignment risks remain possible.
More information about the service, its entry criteria, and risk controls is available at https://acondor.com/how-it-works
Disclaimer: Options trading involves substantial risk and is not suitable for every investor. Defined-risk strategies can still result in losses, and automated trading does not eliminate market, execution or assignment risks. This release is for informational purposes only and does not constitute investment advice or a recommendation to trade any security or options contract.
Contact Info:
Name: Robin Lilly
Email: Send Email
Organization: ACondor LLC
Address: 2521 North Main Street, Las Cruces Unit 1-276, Las Cruces, New Mexico 88001, United States
Phone: +1-575-312-9326
Website: https://acondor.com
Source: NewsNetwork
Release ID: 89208381
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