FYC Iron Condor Strategy
FYC (First Trust Small Cap Growth AlphaDEX Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
First Trust Exchange-Traded AlphaDEX Fund - First Trust Small Cap Growth AlphaDEX Fund is an exchange traded fund launched and managed by First Trust Advisors LP. It invests in public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. It invests in growth stocks of small-cap companies. The fund seeks to track the performance of the Nasdaq AlphaDEX Small Cap Growth Index, by using full replication technique. First Trust Exchange-Traded AlphaDEX Fund - First Trust Small Cap Growth AlphaDEX Fund was formed on April 19, 2011 and is domiciled in the United States.
FYC (First Trust Small Cap Growth AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.27B, a beta of 1.36 versus the broader market, a 52-week range of 77.11-124.06, average daily share volume of 57K, a public-listing history dating back to 2011. These structural characteristics shape how FYC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.36 indicates FYC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FYC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FYC?
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 FYC snapshot
As of June 29, 2026, spot at $125.53, ATM IV 18.70%, IV rank 1.16%, expected move 5.36%. The iron condor on FYC 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 18-day expiry.
Why this iron condor structure on FYC specifically: FYC IV at 18.70% is on the cheap side of its 1-year range, which means a premium-selling FYC iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.36% (roughly $6.73 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FYC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FYC should anchor to the underlying notional of $125.53 per share and to the trader's directional view on FYC etf.
FYC iron condor setup
The FYC 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 FYC near $125.53, the first option leg uses a $131.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FYC chain at a 18-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 FYC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $131.81 | N/A |
| Buy 1 | Call | $138.08 | N/A |
| Sell 1 | Put | $119.25 | N/A |
| Buy 1 | Put | $112.98 | N/A |
FYC 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.
FYC iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FYC. 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 FYC
Iron condors on FYC are a delta-neutral premium-collection structure that profits if FYC etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FYC thesis for this iron condor
The market-implied 1-standard-deviation range for FYC extends from approximately $118.80 on the downside to $132.26 on the upside. A FYC iron condor is a delta-neutral premium-collection structure that pays off when FYC 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 FYC IV rank near 1.16% 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 FYC at 18.70%. As a Financial Services name, FYC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FYC-specific events.
FYC 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. FYC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FYC alongside the broader basket even when FYC-specific fundamentals are unchanged. Short-premium structures like a iron condor on FYC carry tail risk when realized volatility exceeds the implied move; review historical FYC earnings reactions and macro stress periods before sizing. Always rebuild the position from current FYC chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FYC?
- A iron condor on FYC is the iron condor strategy applied to FYC (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 FYC etf trading near $125.53, the strikes shown on this page are snapped to the nearest listed FYC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FYC 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 FYC iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 18.70%), 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 FYC iron condor?
- The breakeven for the FYC iron condor priced on this page is no defined breakeven on the modeled curve 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 FYC market-implied 1-standard-deviation expected move is approximately 5.36%; 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 FYC?
- Iron condors on FYC are a delta-neutral premium-collection structure that profits if FYC etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FYC implied volatility affect this iron condor?
- FYC ATM IV is at 18.70% with IV rank near 1.16%, 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.