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Balanced vs. Dynamic Iron Condors

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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

There are a few key differences between static and dynamic iron condors that are important to keep in mind.

Balanced (Static)
  • Less capital required
  • Lower probability of profit
  • Lower max loss
Dynamic
  • Higher probability of profit
  • Higher max loss / capital required
  • Higher dollar profits

The main thing to keep in mind is that the P/L as % of max loss is the same for both iron condors. This means that risk-reward is proportional: dynamic IC make more money but take more risk, and the balanced IC is the opposite.

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