FEMR Iron Condor Strategy
FEMR (Fidelity Covington Trust - Fidelity Enhanced Emerging Markets ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
FEMR is actively managed and aims for capital appreciation by investing at least 80% of assets in securities and depositary receipts of emerging market issuers. These markets are defined by MSCI and include low- to middle-income economies as per the World Bank. The fund primarily invests in common stocks, diversifying across various emerging countries. A research-driven approach is used to identify long-term stock return drivers such as valuation, growth, and quality. This research is systematically applied with a proprietary portfolio construction and risk management framework. The objective is to select a diversified stock group that potentially offers higher total returns than the MSCI Emerging Markets Index.
FEMR (Fidelity Covington Trust - Fidelity Enhanced Emerging Markets ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $188.2M, a beta of 1.06 versus the broader market, a 52-week range of 30.23-44.41, average daily share volume of 43K, a public-listing history dating back to 2024. These structural characteristics shape how FEMR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places FEMR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FEMR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FEMR?
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.
FEMR snapshot
As of September 29, 2026, spot at $41.62, ATM IV 30.10%, IV rank 5.76%, expected move 8.63%. The iron condor on FEMR below is built from the 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 FEMR specifically: FEMR IV at 30.10% is on the cheap side of its 1-year range, which means a premium-selling FEMR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $3.59 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 FEMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEMR should anchor to the underlying notional of $41.62 per share and to the trader's directional view on FEMR etf.
FEMR iron condor setup
The FEMR 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 FEMR at $41.62 on that close, the first option leg uses a $43.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FEMR 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 FEMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $43.70 | N/A |
| Buy 1 | Call | $45.78 | N/A |
| Sell 1 | Put | $39.54 | N/A |
| Buy 1 | Put | $37.46 | N/A |
FEMR 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.
FEMR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FEMR. 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 FEMR
Iron condors on FEMR are a delta-neutral premium-collection structure that profits if FEMR etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FEMR thesis for this iron condor
The market-implied 1-standard-deviation range for FEMR extends from approximately $38.03 on the downside to $45.21 on the upside. A FEMR iron condor is a delta-neutral premium-collection structure that pays off when FEMR 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 FEMR IV rank near 5.76% 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 FEMR at 30.10%. As a Financial Services name, FEMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEMR-specific events.
FEMR 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. FEMR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FEMR alongside the broader basket even when FEMR-specific fundamentals are unchanged. Short-premium structures like a iron condor on FEMR carry tail risk when realized volatility exceeds the implied move; review historical FEMR earnings reactions and macro stress periods before sizing. Always rebuild the position from current FEMR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FEMR?
- A iron condor on FEMR is the iron condor strategy applied to FEMR (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 FEMR etf at $41.62 on the most recent close, the strikes shown on this page are snapped to the nearest listed FEMR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FEMR 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 FEMR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), 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 FEMR iron condor?
- The breakeven for the FEMR iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FEMR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.63%; 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 FEMR?
- Iron condors on FEMR are a delta-neutral premium-collection structure that profits if FEMR etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FEMR implied volatility affect this iron condor?
- FEMR ATM IV is at 30.10% with IV rank near 5.76%, 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.