FRI Iron Condor Strategy
FRI (First Trust S&P REIT Index Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Operating as an exchange-traded fund, the First Trust S&P REIT Index Fund aims to generally replicate the price performance and income generation of the S&P United States REIT Index, before factoring in its own operational expenses.
FRI (First Trust S&P REIT Index Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $177.0M, a beta of 0.95 versus the broader market, a 52-week range of 26.68-33.44, average daily share volume of 32K, a public-listing history dating back to 2007. These structural characteristics shape how FRI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places FRI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FRI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FRI?
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.
FRI snapshot
As of August 14, 2026, spot at $32.13, ATM IV 20.10%, IV rank 13.13%, expected move 5.76%. The iron condor on FRI 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 35-day expiry.
Why this iron condor structure on FRI specifically: FRI IV at 20.10% is on the cheap side of its 1-year range, which means a premium-selling FRI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.76% (roughly $1.85 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 FRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FRI should anchor to the underlying notional of $32.13 per share and to the trader's directional view on FRI etf.
FRI iron condor setup
The FRI 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 FRI at $32.13 on that close, the first option leg uses a $33.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FRI 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 FRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $33.74 | N/A |
| Buy 1 | Call | $35.34 | N/A |
| Sell 1 | Put | $30.52 | N/A |
| Buy 1 | Put | $28.92 | N/A |
FRI 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.
FRI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FRI. 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 FRI
Iron condors on FRI are a delta-neutral premium-collection structure that profits if FRI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FRI thesis for this iron condor
The market-implied 1-standard-deviation range for FRI extends from approximately $30.28 on the downside to $33.98 on the upside. A FRI iron condor is a delta-neutral premium-collection structure that pays off when FRI 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 FRI IV rank near 13.13% 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 FRI at 20.10%. As a Financial Services name, FRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FRI-specific events.
FRI 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. FRI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FRI alongside the broader basket even when FRI-specific fundamentals are unchanged. Short-premium structures like a iron condor on FRI carry tail risk when realized volatility exceeds the implied move; review historical FRI earnings reactions and macro stress periods before sizing. Always rebuild the position from current FRI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FRI?
- A iron condor on FRI is the iron condor strategy applied to FRI (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 FRI etf at $32.13 on the most recent close, the strikes shown on this page are snapped to the nearest listed FRI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FRI 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 FRI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 20.10%), 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 FRI iron condor?
- The breakeven for the FRI 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 FRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.76%; 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 FRI?
- Iron condors on FRI are a delta-neutral premium-collection structure that profits if FRI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FRI implied volatility affect this iron condor?
- FRI ATM IV is at 20.10% with IV rank near 13.13%, 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.