HEDJ Iron Condor Strategy
HEDJ (WisdomTree Europe Hedged Equity Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund invests at least 95% of its total assets (exclusive of collateral held from securities lending) in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index provides exposure to European equity securities, particularly shares of European exporters, while at the same time neutralizing exposure to fluctuations between the value of the U.S. dollar and the euro. The fund is non-diversified.
HEDJ (WisdomTree Europe Hedged Equity Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.77B, a beta of 0.73 versus the broader market, a 52-week range of 47.14-56.81, average daily share volume of 64K, a public-listing history dating back to 2010. These structural characteristics shape how HEDJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places HEDJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HEDJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on HEDJ?
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 HEDJ snapshot
As of May 15, 2026, spot at $54.62, ATM IV 26.80%, IV rank 17.99%, expected move 7.68%. The iron condor on HEDJ 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 HEDJ specifically: HEDJ IV at 26.80% is on the cheap side of its 1-year range, which means a premium-selling HEDJ iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.68% (roughly $4.20 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 HEDJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on HEDJ should anchor to the underlying notional of $54.62 per share and to the trader's directional view on HEDJ etf.
HEDJ iron condor setup
The HEDJ 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 HEDJ near $54.62, the first option leg uses a $57.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HEDJ 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 HEDJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $57.00 | $1.05 |
| Buy 1 | Call | $60.00 | $0.64 |
| Sell 1 | Put | $52.00 | $0.50 |
| Buy 1 | Put | $49.00 | $0.09 |
HEDJ iron condor risk and reward
- Net Premium / Debit
- +$82.00
- Max Profit (per contract)
- $82.00
- Max Loss (per contract)
- -$218.00
- Breakeven(s)
- $51.18, $57.82
- Risk / Reward Ratio
- 0.376
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.
HEDJ iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on HEDJ. 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% | -$218.00 |
| $12.09 | -77.9% | -$218.00 |
| $24.16 | -55.8% | -$218.00 |
| $36.24 | -33.7% | -$218.00 |
| $48.31 | -11.5% | -$218.00 |
| $60.39 | +10.6% | -$218.00 |
| $72.46 | +32.7% | -$218.00 |
| $84.54 | +54.8% | -$218.00 |
| $96.62 | +76.9% | -$218.00 |
| $108.69 | +99.0% | -$218.00 |
When traders use iron condor on HEDJ
Iron condors on HEDJ are a delta-neutral premium-collection structure that profits if HEDJ etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
HEDJ thesis for this iron condor
The market-implied 1-standard-deviation range for HEDJ extends from approximately $50.42 on the downside to $58.82 on the upside. A HEDJ iron condor is a delta-neutral premium-collection structure that pays off when HEDJ 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 HEDJ IV rank near 17.99% 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 HEDJ at 26.80%. As a Financial Services name, HEDJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HEDJ-specific events.
HEDJ 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. HEDJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HEDJ alongside the broader basket even when HEDJ-specific fundamentals are unchanged. Short-premium structures like a iron condor on HEDJ carry tail risk when realized volatility exceeds the implied move; review historical HEDJ earnings reactions and macro stress periods before sizing. Always rebuild the position from current HEDJ chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on HEDJ?
- A iron condor on HEDJ is the iron condor strategy applied to HEDJ (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 HEDJ etf trading near $54.62, the strikes shown on this page are snapped to the nearest listed HEDJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HEDJ 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 HEDJ iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 26.80%), the computed maximum profit is $82.00 per contract and the computed maximum loss is -$218.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HEDJ iron condor?
- The breakeven for the HEDJ iron condor priced on this page is roughly $51.18 and $57.82 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 HEDJ market-implied 1-standard-deviation expected move is approximately 7.68%; 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 HEDJ?
- Iron condors on HEDJ are a delta-neutral premium-collection structure that profits if HEDJ etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current HEDJ implied volatility affect this iron condor?
- HEDJ ATM IV is at 26.80% with IV rank near 17.99%, 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.