So far my trades have been exclusively iron condors on underlyings with high(ish) IV rank at 65+% probability OTM on both sides. I've done a couple of re-wingings (re-opening a closed vertical on the untested side of an existing IC).
The procedure is roughly as follows:
Look at Dough for interesting products (could be replaced with a stock scan if my TDA account were funded, but Dough's curated list is faster at the moment).
Load up the option chain in TOS and look at the proper OTM strikes. If the credit is >50% of the width then proceed. Otherwise go back to Dough.
Put the credit and BPE (which is the strike width - credit received on a symmetrical IC) into my spreadsheet and let it calculate my exits. If I like the exits (which are calculated based on a %age of max profit) then I'll put the trade on.
The formulas in the spreadsheet are built around getting a high return on the risked money which I use the BPE for. Since it's all melted together (and assuming my formulas are correct; which I've checked a bajillion times) I just select a target % of max profit from the automatically calculated 25, 30, 50 and 75% and nearly always come out at least 20% return on BPE with all commissions calculated for. So I can just plug in the strikes (or manually copy BPE into the spreadsheet from TOS) and the price I'm contemplating selling the IC for and look at where my exits would be. Often they're negative which just means there's not enough premium to sell to overcome my commission cost. Sometimes the exit price will be a couple of pennies and I'll usually skip those because I expect I'd have to wait on the trade for too long.
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