 What's up, Navigation Traders? Welcome to another video lesson from Navigation Trading. In this video, I wanna talk to you about trading iron condors during a market crash. So iron condors are one of the core strategies that we use at Navigation Trading. And a lot of times I get questions from members about, yeah, this has been working great now because the market's been going up, but how does this strategy perform if the market crashes? And that's what I want to show you in this lesson. So what we did is we did a pretty significant back-tested study. And so the criteria we're looking at is SPY, so the S&P 500 ETF. We're looking at entering these trades with 45 days to expiration. We typically like to enter trades anywhere from 30 to 60 days. So right in the middle is 45 days. We closed our winners at 40% of max profit, just like we do. And we took a look at two different time frames. So we looked at the most recent five years. And obviously with the market kind of trending upwards over those five years, that's a little bit different situation than what we saw in the meltdown between 2007 and 2009. So we'll look at both of these separately to compare the performance of iron condors. So let's go to the CML option strategy back tester. And what I'm looking at is like I said, an iron condor. We're selling the iron condor to open. Obviously there's no earnings. It's an ETF, so just nothing special here. We're opening it at normal time and we're closing the trade when we have gains at that 40% of max profit. And then each trade is simultaneously opened. So once the trade is closed, immediately we open a new one to give you an idea of how did this strategy performed. Now, I wanna start with the five year back tested study because I think this is something where, a lot of people understand if we're putting on iron condors and the market's trending higher, that means implied volatility is typically contracting. So that's gonna benefit an iron condor. So I don't think it's any surprise that what you'll see is the performance in what we could call a bullish market has performed very well. I mean, you're seeing several different deltas that we put up just to give you an idea. We kind of play in this 20 to 30 delta is where we sell and then we buy the five to 10. And so kind of in these three columns, I put the 40 delta and buying the 10, 40 delta buying the 15 as well just for reference. And you can see obviously the tighter or the closer to the money you got, you actually perform better. But this is typically the area that we play in. This is our sandbox, selling the 20 to 30 delta and buying a further out of the money strike. And so over the last five years, you can see the performance has been great. Let me hover over this. And what you'll see is at the top, you can see SPY stock over that five year period gained over 94%. So 94.8. And then with the different colors below, you can see which referenced the bottom color of each of these boxes, by the way. So what you'll see is compared to the SPY stock, every single one of these outperformed just buying and holding the S&P 500. So, you know, today it's very popular just to invest in index funds, right? And just buy the S&P 500 because most money managers count don't even outperform it. Well, that's true. However, you can see by just simply putting on an iron condor as soon as it closes with a gain of 40% of max profit put on another one. And just by doing that very simple, simple strategy, you can beat the pants off of the S&P 500. You can see the 20 delta, five delta made over 109%. The 20 delta 10 made 185%. The 30 delta, 10 delta made 151%. And then you can see 241 and 511%. So significantly outperforming just the buy and hold strategy of the S&P 500. But I want to take it to another level. And what this whole video is about is does this strategy work during a market crash? And so we can just simply choose 2007 through 2009. The software within a few seconds is gonna populate and give you an idea of what the performance was during that time. Now, as I would have thought before I even did this that the performance wouldn't have been as good as a bull market, but look at what's happened. Just in the period of 2007 to 2009, one of the biggest market meltdowns that we've ever seen, look at how this has performed. With the 25, made over 117%. The 2010, basically break even, made a little bit. The 30 delta, a little over 46%. But you also have to compare that to the S&P 500, right? We're trading iron condors on the S&P 500. Everybody likes to use the S&P 500 as a benchmark for performance in the market. So let's take a look over here. I mean, you can see during that period of time, the S&P 500 was down 15.1%. However, regardless of the delta you chose to sell an iron condor, you significantly outperformed the S&P 500. I mean, your returns weren't extravagant. They weren't as good as they would be in a bull market. But the bottom line is if you're comparing it just to your buy and hold index funds, it kills it. It literally beats the pants off of that along with any other money manager or mutual fund who's trying to actively manage funds to outperform the S&P 500. It beats those too. So I hope this was helpful in helping you understand that this strategy is viable in a bull market. It's viable in a market crashing environment like we saw in 2007, 2008, 2009. And it's just a strategy that can be used really through any type of market cycle. Now, remember, the other thing is we're not even filtering this for high implied volatility. I've been talking to Ophir and there's talks about adding the implied volatility filter so that we could say, okay, let's only put on iron condors when implied volatility is high. Okay, and I think what you'd see is the returns would be even that much better, but this is just putting on iron condors anytime. IV is high, IV is low. It doesn't matter, just putting on one, taking it off, putting on another one, taking it off, and so forth. So that's the power of this back tester. If you do have interest in getting access to it, we do have an agreement with CML. Normally the price for this option strategy back tester is $149 a month. Ophir and his team have been awesome to work with and they have given navigation traders a huge discount, over 40% discount. And it's just $89 a month. The price will continue to go up as he pours in additional resources and value into the software. But once you lock in, you're locked in for the life of your membership. So if you have any interest in that, you can just go to cmlviz.com forward slash nav tee. Hope that was helpful. We'll talk to you in the next lesson.