FMAT Iron Condor Strategy
FMAT (Fidelity MSCI Materials Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tracks the performance of the MSCI USA IMI Materials 25/50 Index.
FMAT (Fidelity MSCI Materials Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $602.8M, a beta of 1.02 versus the broader market, a 52-week range of 48.08-62.84, average daily share volume of 60K, a public-listing history dating back to 2013. These structural characteristics shape how FMAT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places FMAT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FMAT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FMAT?
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 FMAT snapshot
As of May 15, 2026, spot at $58.13, ATM IV 30.00%, IV rank 49.56%, expected move 8.60%. The iron condor on FMAT 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 FMAT specifically: FMAT IV at 30.00% is mid-range versus its 1-year history, so the credit collected on a FMAT iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.60% (roughly $5.00 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 FMAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMAT should anchor to the underlying notional of $58.13 per share and to the trader's directional view on FMAT etf.
FMAT iron condor setup
The FMAT 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 FMAT near $58.13, the first option leg uses a $61.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMAT 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 FMAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $61.00 | $1.05 |
| Buy 1 | Call | $64.00 | $0.85 |
| Sell 1 | Put | $55.00 | $1.16 |
| Buy 1 | Put | $52.00 | $0.53 |
FMAT iron condor risk and reward
- Net Premium / Debit
- +$83.00
- Max Profit (per contract)
- $83.00
- Max Loss (per contract)
- -$217.00
- Breakeven(s)
- $54.17, $61.83
- Risk / Reward Ratio
- 0.382
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.
FMAT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FMAT. 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% | -$217.00 |
| $12.86 | -77.9% | -$217.00 |
| $25.71 | -55.8% | -$217.00 |
| $38.57 | -33.7% | -$217.00 |
| $51.42 | -11.5% | -$217.00 |
| $64.27 | +10.6% | -$217.00 |
| $77.12 | +32.7% | -$217.00 |
| $89.97 | +54.8% | -$217.00 |
| $102.82 | +76.9% | -$217.00 |
| $115.68 | +99.0% | -$217.00 |
When traders use iron condor on FMAT
Iron condors on FMAT are a delta-neutral premium-collection structure that profits if FMAT etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FMAT thesis for this iron condor
The market-implied 1-standard-deviation range for FMAT extends from approximately $53.13 on the downside to $63.13 on the upside. A FMAT iron condor is a delta-neutral premium-collection structure that pays off when FMAT 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 FMAT IV rank near 49.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on FMAT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FMAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMAT-specific events.
FMAT 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. FMAT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMAT alongside the broader basket even when FMAT-specific fundamentals are unchanged. Short-premium structures like a iron condor on FMAT carry tail risk when realized volatility exceeds the implied move; review historical FMAT earnings reactions and macro stress periods before sizing. Always rebuild the position from current FMAT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FMAT?
- A iron condor on FMAT is the iron condor strategy applied to FMAT (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 FMAT etf trading near $58.13, the strikes shown on this page are snapped to the nearest listed FMAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMAT 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 FMAT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 30.00%), the computed maximum profit is $83.00 per contract and the computed maximum loss is -$217.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FMAT iron condor?
- The breakeven for the FMAT iron condor priced on this page is roughly $54.17 and $61.83 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 FMAT market-implied 1-standard-deviation expected move is approximately 8.60%; 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 FMAT?
- Iron condors on FMAT are a delta-neutral premium-collection structure that profits if FMAT etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FMAT implied volatility affect this iron condor?
- FMAT ATM IV is at 30.00% with IV rank near 49.56%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.