AFRU Iron Condor Strategy
AFRU (T-REX 2X Long AFRM Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
AFRU primarily uses swap agreements to make bullish bets on the share price of Affirm Holdings, Inc. (NASDAQ: AFRM). Additionally, the fund may purchase FLEX call options on AFRM or invest directly in the stocks of AFRM. AFRM is a US technology company that provides financial services for shoppers and merchants. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in AFRM price through daily rebalancing. As a leveraged product, it is designed for short-term tactical use, not as a long-term investment vehicle. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
AFRU (T-REX 2X Long AFRM Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.0M, a beta of 6.81 versus the broader market, a 52-week range of 4.045-19.24, average daily share volume of 50K, a public-listing history dating back to 2025. These structural characteristics shape how AFRU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.81 indicates AFRU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a iron condor on AFRU?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
AFRU snapshot
As of September 29, 2026, spot at $8.43, ATM IV 102.60%, IV rank 23.65%, expected move 29.41%. The iron condor on AFRU below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this iron condor structure on AFRU specifically: AFRU IV at 102.60% is on the cheap side of its 1-year range, which means a premium-selling AFRU iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 29.41% (roughly $2.48 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AFRU expiries trade a higher absolute premium for lower per-day decay. Position sizing on AFRU should anchor to the underlying notional of $8.43 per share and to the trader's directional view on AFRU etf.
AFRU iron condor setup
The AFRU iron condor below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AFRU at $8.43 on that close, the first option leg uses a $8.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AFRU chain at a 80-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AFRU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $8.85 | N/A |
| Buy 1 | Call | $9.27 | N/A |
| Sell 1 | Put | $8.01 | N/A |
| Buy 1 | Put | $7.59 | N/A |
AFRU iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
AFRU iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AFRU. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use iron condor on AFRU
Iron condors on AFRU are a delta-neutral premium-collection structure that profits if AFRU etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AFRU thesis for this iron condor
The market-implied 1-standard-deviation range for AFRU extends from approximately $5.95 on the downside to $10.91 on the upside. A AFRU iron condor is a delta-neutral premium-collection structure that pays off when AFRU stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current AFRU IV rank near 23.65% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AFRU at 102.60%. As a Financial Services name, AFRU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AFRU-specific events.
AFRU iron condor positions are structurally neutral / range-bound; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AFRU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AFRU alongside the broader basket even when AFRU-specific fundamentals are unchanged. Short-premium structures like a iron condor on AFRU carry tail risk when realized volatility exceeds the implied move; review historical AFRU earnings reactions and macro stress periods before sizing. Always rebuild the position from current AFRU chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AFRU?
- A iron condor on AFRU is the iron condor strategy applied to AFRU (etf). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. With AFRU etf at $8.43 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AFRU chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AFRU iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the AFRU iron condor priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 102.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AFRU iron condor?
- The breakeven for the AFRU iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AFRU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a iron condor on AFRU?
- Iron condors on AFRU are a delta-neutral premium-collection structure that profits if AFRU etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AFRU implied volatility affect this iron condor?
- AFRU ATM IV is at 102.60% with IV rank near 23.65%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.