FMAG Iron Condor Strategy
FMAG (Fidelity Magellan ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Opportunistically invests in high-quality cyclical growth stocks and steady growers that seek to benefit from long-term megatrends.
FMAG (Fidelity Magellan ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $254.1M, a beta of 1.12 versus the broader market, a 52-week range of 30.49-36.33, average daily share volume of 25K, a public-listing history dating back to 2021. These structural characteristics shape how FMAG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places FMAG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FMAG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FMAG?
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 FMAG snapshot
As of May 15, 2026, spot at $36.08, ATM IV 29.10%, expected move 8.34%. The iron condor on FMAG 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 FMAG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FMAG is inferred from ATM IV at 29.10% alone, with a market-implied 1-standard-deviation move of approximately 8.34% (roughly $3.01 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 FMAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMAG should anchor to the underlying notional of $36.08 per share and to the trader's directional view on FMAG etf.
FMAG iron condor setup
The FMAG 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 FMAG near $36.08, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMAG 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 FMAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $38.00 | $0.62 |
| Buy 1 | Call | $40.00 | $0.24 |
| Sell 1 | Put | $34.00 | $0.48 |
| Buy 1 | Put | $32.00 | $0.14 |
FMAG iron condor risk and reward
- Net Premium / Debit
- +$72.00
- Max Profit (per contract)
- $72.00
- Max Loss (per contract)
- -$128.00
- Breakeven(s)
- $33.28, $38.72
- Risk / Reward Ratio
- 0.562
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.
FMAG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FMAG. 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% | -$128.00 |
| $7.99 | -77.9% | -$128.00 |
| $15.96 | -55.8% | -$128.00 |
| $23.94 | -33.6% | -$128.00 |
| $31.92 | -11.5% | -$128.00 |
| $39.89 | +10.6% | -$117.19 |
| $47.87 | +32.7% | -$128.00 |
| $55.84 | +54.8% | -$128.00 |
| $63.82 | +76.9% | -$128.00 |
| $71.80 | +99.0% | -$128.00 |
When traders use iron condor on FMAG
Iron condors on FMAG are a delta-neutral premium-collection structure that profits if FMAG etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FMAG thesis for this iron condor
The market-implied 1-standard-deviation range for FMAG extends from approximately $33.07 on the downside to $39.09 on the upside. A FMAG iron condor is a delta-neutral premium-collection structure that pays off when FMAG 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. As a Financial Services name, FMAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMAG-specific events.
FMAG 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. FMAG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMAG alongside the broader basket even when FMAG-specific fundamentals are unchanged. Short-premium structures like a iron condor on FMAG carry tail risk when realized volatility exceeds the implied move; review historical FMAG earnings reactions and macro stress periods before sizing. Always rebuild the position from current FMAG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FMAG?
- A iron condor on FMAG is the iron condor strategy applied to FMAG (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 FMAG etf trading near $36.08, the strikes shown on this page are snapped to the nearest listed FMAG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMAG 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 FMAG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 29.10%), the computed maximum profit is $72.00 per contract and the computed maximum loss is -$128.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FMAG iron condor?
- The breakeven for the FMAG iron condor priced on this page is roughly $33.28 and $38.72 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 FMAG market-implied 1-standard-deviation expected move is approximately 8.34%; 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 FMAG?
- Iron condors on FMAG are a delta-neutral premium-collection structure that profits if FMAG etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FMAG implied volatility affect this iron condor?
- Current FMAG ATM IV is 29.10%; IV rank context is unavailable in the current snapshot.