GRID Iron Condor Strategy
GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund, known by its ticker GRID, functions as an exchange-traded fund (ETF). Its core purpose is to generate investment returns that generally correspond to the overall performance—including both capital growth and income—of a specific stock market benchmark, the Nasdaq Clean Edge Smart Grid Infrastructure Index. This alignment in performance is measured prior to the deduction of the Fund's own management fees and operational expenses.
GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $3.92B, a beta of 1.41 versus the broader market, a 52-week range of 137.37-199.99, average daily share volume of 790K, a public-listing history dating back to 2009. These structural characteristics shape how GRID etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates GRID has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GRID pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on GRID?
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 GRID snapshot
As of June 30, 2026, spot at $191.50, ATM IV 20.80%, IV rank 38.82%, expected move 5.96%. The iron condor on GRID 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 17-day expiry.
Why this iron condor structure on GRID specifically: GRID IV at 20.80% is mid-range versus its 1-year history, so the credit collected on a GRID iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 5.96% (roughly $11.42 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GRID expiries trade a higher absolute premium for lower per-day decay. Position sizing on GRID should anchor to the underlying notional of $191.50 per share and to the trader's directional view on GRID etf.
GRID iron condor setup
The GRID 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 GRID near $191.50, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GRID chain at a 17-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 GRID shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $200.00 | $0.70 |
| Buy 1 | Call | $210.00 | $0.03 |
| Sell 1 | Put | $182.00 | $0.95 |
| Buy 1 | Put | $170.00 | $0.11 |
GRID iron condor risk and reward
- Net Premium / Debit
- +$151.00
- Max Profit (per contract)
- $151.00
- Max Loss (per contract)
- -$1,049.00
- Breakeven(s)
- $180.49, $201.51
- Risk / Reward Ratio
- 0.144
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.
GRID iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on GRID. 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% | -$1,049.00 |
| $42.35 | -77.9% | -$1,049.00 |
| $84.69 | -55.8% | -$1,049.00 |
| $127.03 | -33.7% | -$1,049.00 |
| $169.37 | -11.6% | -$1,049.00 |
| $211.71 | +10.6% | -$849.00 |
| $254.05 | +32.7% | -$849.00 |
| $296.39 | +54.8% | -$849.00 |
| $338.73 | +76.9% | -$849.00 |
| $381.08 | +99.0% | -$849.00 |
When traders use iron condor on GRID
Iron condors on GRID are a delta-neutral premium-collection structure that profits if GRID etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
GRID thesis for this iron condor
The market-implied 1-standard-deviation range for GRID extends from approximately $180.08 on the downside to $202.92 on the upside. A GRID iron condor is a delta-neutral premium-collection structure that pays off when GRID 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 GRID IV rank near 38.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on GRID should anchor more to the directional view and the expected-move geometry. As a Financial Services name, GRID options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GRID-specific events.
GRID 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. GRID positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GRID alongside the broader basket even when GRID-specific fundamentals are unchanged. Short-premium structures like a iron condor on GRID carry tail risk when realized volatility exceeds the implied move; review historical GRID earnings reactions and macro stress periods before sizing. Always rebuild the position from current GRID chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on GRID?
- A iron condor on GRID is the iron condor strategy applied to GRID (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 GRID etf trading near $191.50, the strikes shown on this page are snapped to the nearest listed GRID chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GRID 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 GRID iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $151.00 per contract and the computed maximum loss is -$1,049.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GRID iron condor?
- The breakeven for the GRID iron condor priced on this page is roughly $180.49 and $201.51 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 GRID market-implied 1-standard-deviation expected move is approximately 5.96%; 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 GRID?
- Iron condors on GRID are a delta-neutral premium-collection structure that profits if GRID etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current GRID implied volatility affect this iron condor?
- GRID ATM IV is at 20.80% with IV rank near 38.82%, 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.