Contraction Profit Target %

Setting key
contraction_profit_target_pct
Default
50%

What it does

Profit target for contraction engine positions, expressed as a percentage of maximum credit received. When an open contraction position reaches this percentage of its maximum possible profit, ACondor closes it. The contraction engine also has a secondary exit: if IV Rank normalizes back below 30 (the vol has mean-reverted), the position closes regardless of profit percentage.

When to change it

Lower to 35-40% to take profits faster on contraction trades, which can reverse quickly if vol spikes again. Raising above 50% means holding longer to capture more premium but accepting more risk of the position turning against you.

Safe range

25% (quick exits, lower reward) to 75% (greedy, higher risk of reversal). Default 50% matches the mechanical engine.

Example

$0.80 credit contraction iron condor. At 50% profit target, close when the position is worth $0.40 (you've captured $0.40 of the $0.80 credit). If IV normalizes before reaching the profit target, the position closes anyway.

Financial Information Disclaimer

This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.