The tastylive research team backtested a popular way to manage zero DTE iron condors called legging out, where you buy back one side once it decays and let the other keep working. They ran twenty delta SPX condors from 2023 forward, each with a twenty five percent profit target, then compared it against simply holding the full position to expiration.
The result may surprise you. Legging out did not meaningfully lift the win rate or cut tail risk, mostly because the profit target is already doing the heavy lifting. Buying a side back too early gives up gains, while holding to expiration with a profit target produced the strongest results overall. This is education, not a recommendation.
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Chapters
00:00 Legging out of 0DTE condors
00:36 Why 0DTE tr...