EPI Iron Condor Strategy
EPI (WisdomTree India Earnings Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal circumstances, at least 95% of the fund's total assets (exclusive of collateral held from securities lending) will be invested in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is comprised of companies incorporated and traded in India that are profitable and that are eligible to be purchased by foreign investors as of the annual index screening date. It is non-diversified.
EPI (WisdomTree India Earnings Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.73B, a beta of 0.60 versus the broader market, a 52-week range of 39.41-47.68, average daily share volume of 964K, a public-listing history dating back to 2008. These structural characteristics shape how EPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates EPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on EPI?
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 EPI snapshot
As of May 15, 2026, spot at $42.09, ATM IV 24.60%, IV rank 3.67%, expected move 7.05%. The iron condor on EPI 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 34-day expiry.
Why this iron condor structure on EPI specifically: EPI IV at 24.60% is on the cheap side of its 1-year range, which means a premium-selling EPI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.05% (roughly $2.97 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPI should anchor to the underlying notional of $42.09 per share and to the trader's directional view on EPI etf.
EPI iron condor setup
The EPI 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 EPI near $42.09, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPI chain at a 34-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 EPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $44.00 | $0.53 |
| Buy 1 | Call | $46.00 | $0.20 |
| Sell 1 | Put | $40.00 | $0.48 |
| Buy 1 | Put | $38.00 | $0.18 |
EPI iron condor risk and reward
- Net Premium / Debit
- +$62.00
- Max Profit (per contract)
- $62.00
- Max Loss (per contract)
- -$138.00
- Breakeven(s)
- $39.38, $44.62
- Risk / Reward Ratio
- 0.449
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.
EPI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on EPI. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$138.00 |
| $9.32 | -77.9% | -$138.00 |
| $18.62 | -55.8% | -$138.00 |
| $27.93 | -33.7% | -$138.00 |
| $37.23 | -11.5% | -$138.00 |
| $46.54 | +10.6% | -$138.00 |
| $55.84 | +32.7% | -$138.00 |
| $65.15 | +54.8% | -$138.00 |
| $74.45 | +76.9% | -$138.00 |
| $83.76 | +99.0% | -$138.00 |
When traders use iron condor on EPI
Iron condors on EPI are a delta-neutral premium-collection structure that profits if EPI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
EPI thesis for this iron condor
The market-implied 1-standard-deviation range for EPI extends from approximately $39.12 on the downside to $45.06 on the upside. A EPI iron condor is a delta-neutral premium-collection structure that pays off when EPI 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 EPI IV rank near 3.67% 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 EPI at 24.60%. As a Financial Services name, EPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPI-specific events.
EPI 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. EPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EPI alongside the broader basket even when EPI-specific fundamentals are unchanged. Short-premium structures like a iron condor on EPI carry tail risk when realized volatility exceeds the implied move; review historical EPI earnings reactions and macro stress periods before sizing. Always rebuild the position from current EPI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on EPI?
- A iron condor on EPI is the iron condor strategy applied to EPI (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 EPI etf trading near $42.09, the strikes shown on this page are snapped to the nearest listed EPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EPI 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 EPI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 24.60%), the computed maximum profit is $62.00 per contract and the computed maximum loss is -$138.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EPI iron condor?
- The breakeven for the EPI iron condor priced on this page is roughly $39.38 and $44.62 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 EPI market-implied 1-standard-deviation expected move is approximately 7.05%; 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 EPI?
- Iron condors on EPI are a delta-neutral premium-collection structure that profits if EPI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current EPI implied volatility affect this iron condor?
- EPI ATM IV is at 24.60% with IV rank near 3.67%, 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.