How are CHAU 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 CHAU iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 53.70%), the computed maximum profit is $75.50 per contract and the computed maximum loss is -$124.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHAU iron condor?

The breakeven for the CHAU iron condor priced on this page is roughly $23.25 and $26.76 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CHAU market-implied 1-standard-deviation expected move is approximately 15.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHAU implied volatility affect this iron condor?

CHAU ATM IV is at 53.70% with IV rank near 76.22%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

CHAU Iron Condor Strategy

CHAU (Direxion Daily CSI 300 China A Share Bull 2X Shares), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The index is a modified free-float market capitalization weighted index comprised of the largest and most liquid stocks in the Chinese A-share market. The fund, under normal circumstances, invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index, that, in combination, provide 2X daily leveraged exposure to the index, consistent with the fund's investment objective. It is non-diversified.

CHAU (Direxion Daily CSI 300 China A Share Bull 2X Shares) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $194.4M, a beta of 0.88 versus the broader market, a 52-week range of 14.68-26.1, average daily share volume of 122K, a public-listing history dating back to 2015. These structural characteristics shape how CHAU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.88 places CHAU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CHAU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on CHAU?

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.

Current CHAU snapshot

As of June 30, 2026, spot at $24.96, ATM IV 53.70%, IV rank 76.22%, expected move 15.40%. The iron condor on CHAU below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this iron condor structure on CHAU specifically: CHAU IV at 53.70% is rich versus its 1-year range, which favors premium-selling structures like a CHAU iron condor, with a market-implied 1-standard-deviation move of approximately 15.40% (roughly $3.84 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHAU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHAU should anchor to the underlying notional of $24.96 per share and to the trader's directional view on CHAU etf.

CHAU iron condor setup

The CHAU iron condor below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CHAU near $24.96, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHAU chain at a 17-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 CHAU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$26.00	$0.70
Buy 1	Call	$27.00	$0.50
Sell 1	Put	$24.00	$0.78
Buy 1	Put	$22.00	$0.22

CHAU iron condor risk and reward

Net Premium / Debit: +$75.50
Max Profit (per contract): $75.50
Max Loss (per contract): -$124.50
Breakeven(s): $23.25, $26.76
Risk / Reward Ratio: 0.606

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.

CHAU iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on CHAU. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$124.50
$5.53	-77.9%	-$124.50
$11.05	-55.7%	-$124.50
$16.56	-33.6%	-$124.50
$22.08	-11.5%	-$116.42
$27.60	+10.6%	-$24.50
$33.12	+32.7%	-$24.50
$38.63	+54.8%	-$24.50
$44.15	+76.9%	-$24.50
$49.67	+99.0%	-$24.50

When traders use iron condor on CHAU

Iron condors on CHAU are a delta-neutral premium-collection structure that profits if CHAU etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

CHAU thesis for this iron condor

The market-implied 1-standard-deviation range for CHAU extends from approximately $21.12 on the downside to $28.80 on the upside. A CHAU iron condor is a delta-neutral premium-collection structure that pays off when CHAU 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 CHAU IV rank near 76.22% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CHAU at 53.70%. As a Financial Services name, CHAU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHAU-specific events.

CHAU 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. CHAU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHAU alongside the broader basket even when CHAU-specific fundamentals are unchanged. Short-premium structures like a iron condor on CHAU carry tail risk when realized volatility exceeds the implied move; review historical CHAU earnings reactions and macro stress periods before sizing. Always rebuild the position from current CHAU chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on CHAU?: A iron condor on CHAU is the iron condor strategy applied to CHAU (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 CHAU etf trading near $24.96, the strikes shown on this page are snapped to the nearest listed CHAU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHAU 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 CHAU iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 53.70%), the computed maximum profit is $75.50 per contract and the computed maximum loss is -$124.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHAU iron condor?: The breakeven for the CHAU iron condor priced on this page is roughly $23.25 and $26.76 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CHAU market-implied 1-standard-deviation expected move is approximately 15.40%; 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 CHAU?: Iron condors on CHAU are a delta-neutral premium-collection structure that profits if CHAU etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current CHAU implied volatility affect this iron condor?: CHAU ATM IV is at 53.70% with IV rank near 76.22%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.