FEPI Iron Condor Strategy
FEPI (REX FANG & Innovation Equity Premium Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on NASDAQ.
The REX FANG & Innovation Equity Premium Income ETF, or FEPI, utilizes a covered call strategy designed to achieve two main goals: generating income and providing exposure to potential growth within the technology sector. The fund accomplishes this by maintaining positions in the stocks comprising its benchmark, the Solactive FANG Innovation Index, and simultaneously selling call options on these shares that are slightly out-of-the-money. This approach leverages the significant volatility often found in major technology companies, thereby earning premium income from the options. However, it also means that some of the potential upside from stock appreciation is capped. An additional benefit is a modest safeguard against drops in stock prices. It's important to recognize, though, that this protective buffer is confined to the option premiums received and may not completely negate substantial declines in the underlying securities.
FEPI (REX FANG & Innovation Equity Premium Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $689.7M, a beta of 1.10 versus the broader market, a 52-week range of 37.9-49.68, average daily share volume of 204K, a public-listing history dating back to 2023. These structural characteristics shape how FEPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places FEPI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FEPI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FEPI?
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.
FEPI snapshot
As of August 14, 2026, spot at $42.38, ATM IV 15.90%, IV rank 2.06%, expected move 4.56%. The iron condor on FEPI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on FEPI specifically: FEPI IV at 15.90% is on the cheap side of its 1-year range, which means a premium-selling FEPI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.56% (roughly $1.93 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FEPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEPI should anchor to the underlying notional of $42.38 per share and to the trader's directional view on FEPI etf.
FEPI iron condor setup
The FEPI iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FEPI at $42.38 on that close, 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 FEPI chain at a 35-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 FEPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $44.00 | $0.50 |
| Buy 1 | Call | $47.00 | $0.12 |
| Sell 1 | Put | $40.00 | $0.59 |
| Buy 1 | Put | $38.00 | $0.20 |
FEPI iron condor risk and reward
- Net Premium / Debit
- +$77.00
- Max Profit (per contract)
- $77.00
- Max Loss (per contract)
- -$223.00
- Breakeven(s)
- $39.23, $44.77
- Risk / Reward Ratio
- 0.345
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.
FEPI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FEPI. 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% | -$123.00 |
| $9.38 | -77.9% | -$123.00 |
| $18.75 | -55.8% | -$123.00 |
| $28.12 | -33.7% | -$123.00 |
| $37.49 | -11.5% | -$123.00 |
| $46.86 | +10.6% | -$208.67 |
| $56.23 | +32.7% | -$223.00 |
| $65.60 | +54.8% | -$223.00 |
| $74.96 | +76.9% | -$223.00 |
| $84.33 | +99.0% | -$223.00 |
When traders use iron condor on FEPI
Iron condors on FEPI are a delta-neutral premium-collection structure that profits if FEPI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FEPI thesis for this iron condor
The market-implied 1-standard-deviation range for FEPI extends from approximately $40.45 on the downside to $44.31 on the upside. A FEPI iron condor is a delta-neutral premium-collection structure that pays off when FEPI 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 FEPI IV rank near 2.06% 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 FEPI at 15.90%. As a Financial Services name, FEPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEPI-specific events.
FEPI 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. FEPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FEPI alongside the broader basket even when FEPI-specific fundamentals are unchanged. Short-premium structures like a iron condor on FEPI carry tail risk when realized volatility exceeds the implied move; review historical FEPI earnings reactions and macro stress periods before sizing. Always rebuild the position from current FEPI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FEPI?
- A iron condor on FEPI is the iron condor strategy applied to FEPI (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 FEPI etf at $42.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FEPI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FEPI 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 FEPI iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 15.90%), the computed maximum profit is $77.00 per contract and the computed maximum loss is -$223.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FEPI iron condor?
- The breakeven for the FEPI iron condor priced on this page is roughly $39.23 and $44.77 at expiration, derived from the August 14, 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 FEPI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.56%; 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 FEPI?
- Iron condors on FEPI are a delta-neutral premium-collection structure that profits if FEPI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FEPI implied volatility affect this iron condor?
- FEPI ATM IV is at 15.90% with IV rank near 2.06%, 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.