Please share your thoughts on this: An IB account has 10.000 $ in cash. Strategy is to buy Iron Condors. This Iron Condor: buy 1 RUT put june 720 @ 5.60 sell 1 RUT put june 730 @ 6.50 sell 1 RUT put june 920 1.10 buy 1 RUT put june 930 @ 0.70 Details: date 18-april-2011, 60 days to expiration. RUT closed at 821.84, RVX at 21.32 margin = 1000 minus credit received: 130 , plus commission 2.95. The maximum number of Condors that can be bought is 11. What is a safe number ? The Flash Crash in may 2010: RUT went down about 10% and RVX up about 40%. Using these percentages on this Iron Condor would result in about 500$ loss. When we buy 7 Condors, we would still have a margin of 3889 and we can survive a 500 dollar loss per condor. IB will not liquidate positions at a large loss, and hopefully by expiration the RUT has recovered.