Theory is great, but nothing teaches like walking through a real trade with actual numbers. Here's a complete iron condor trade on AMD from entry to exit.

The Setup

Date: March 10, 2026 AMD stock price: $162.50 IV Rank: 38 (moderate — acceptable for iron condors) Target expiration: April 11, 2026 (32 days out)

I want to sell the 16-delta strikes to give AMD room to move. Here's what the option chain looks like:

The Trade

| Leg | Strike | Delta | Premium | Buy put$145-0.08-$1.35 Sell put$150-0.16+$2.40 Sell call$175+0.16+$2.25 | Buy call | $180 | +0.08 | -$1.15 |

Net credit: ($2.40 - $1.35) + ($2.25 - $1.15) = $2.15 per share ($215 per contract)

Key Metrics at Entry

  • Max profit: $215
  • Max loss: ($5.00 width - $2.15 credit) × 100 = $285
  • Breakeven low: $150 - $2.15 = $147.85
  • Breakeven high: $175 + $2.15 = $177.15
  • Return on risk: $215 / $285 = 75.4% — this is excellent
  • Probability of profit: ~68% based on the delta of the short strikes

    • Week 1: Days 1-7

    AMD drifts from $162.50 to $159.80. Minor pullback, nothing alarming. The iron condor is now worth $1.75. My unrealized profit is $0.40 ($40) — about 19% of max profit.

    No action needed. The stock is well within the range, and theta is starting to work.

    Week 2: Days 8-14

    AMD drops to $154.20 after a sector rotation out of semis. The put side is getting tested. The iron condor is now worth $2.60, so I'm sitting at an unrealized loss of $0.45 ($45).

    The short put at $150 is now 17 delta — barely changed from entry. I hold the position. AMD is still $4.20 above my short put, and I have 18 days left.

    Week 3: Days 15-21

    AMD bounces back to $161. The iron condor is now worth $0.95. Unrealized profit: $1.20 ($120) — that's 56% of max profit with 11 days remaining.

    This is a decision point. Many traders, myself included, have a rule: close at 50% of max profit. I could close now for $120 and free up the capital. But I decide to hold for a bit more since the stock is centered.

    Week 4: Days 22-32

    AMD finishes at $164 on expiration day. All options expire worthless.

    Final P&L: +$215 (full max profit)

    What Made This Trade Work

  • Strike selection at 16 delta gave AMD a $25 range to stay within ($150-$175). AMD only moved $4.20 from center at its worst
  • 32 DTE was enough time to collect decent premium but short enough for meaningful theta decay
  • No earnings during the holding period — I specifically checked this before entering
  • Moderate IV meant the credit was fair for the risk taken

    • The Lesson

    This trade had a scary moment in week 2 when AMD pulled back. New traders often panic and close at a loss. The key is checking whether your short strike deltas have blown out. At $154.20, my $150 short put was still only 17 delta. The probability math hadn't changed meaningfully — just the mark-to-market P&L.

    Tools like OptionsPilot can help you monitor delta changes in real time so you're making decisions based on probability, not emotion.