KSPY Iron Condor Strategy
KSPY (KraneShares Hedgeye Hedged Equity Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal circumstances, the fund invests at least 80% of its net assets in securities of the underlying index and other instruments that have economic characteristics similar to those in the underlying index. The underlying index is designed to track the performance of a portfolio of large cap securities that is subject to downside hedging and seeks to exhibit less volatility than would a portfolio of large cap securities alone. The fund is non-diversified.
KSPY (KraneShares Hedgeye Hedged Equity Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $32.6M, a beta of 0.47 versus the broader market, a 52-week range of 25.37-29.235, average daily share volume of 47K, a public-listing history dating back to 2024. These structural characteristics shape how KSPY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates KSPY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KSPY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on KSPY?
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 KSPY snapshot
As of May 14, 2026, spot at $28.72, ATM IV 35.20%, IV rank 27.98%, expected move 10.09%. The iron condor on KSPY 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 35-day expiry.
Why this iron condor structure on KSPY specifically: KSPY IV at 35.20% is on the cheap side of its 1-year range, which means a premium-selling KSPY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.09% (roughly $2.90 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 KSPY expiries trade a higher absolute premium for lower per-day decay. Position sizing on KSPY should anchor to the underlying notional of $28.72 per share and to the trader's directional view on KSPY etf.
KSPY iron condor setup
The KSPY 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 KSPY near $28.72, the first option leg uses a $30.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KSPY 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 KSPY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $30.16 | N/A |
| Buy 1 | Call | $31.59 | N/A |
| Sell 1 | Put | $27.28 | N/A |
| Buy 1 | Put | $25.85 | N/A |
KSPY 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.
KSPY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on KSPY. 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 KSPY
Iron condors on KSPY are a delta-neutral premium-collection structure that profits if KSPY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
KSPY thesis for this iron condor
The market-implied 1-standard-deviation range for KSPY extends from approximately $25.82 on the downside to $31.62 on the upside. A KSPY iron condor is a delta-neutral premium-collection structure that pays off when KSPY 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 KSPY IV rank near 27.98% 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 KSPY at 35.20%. As a Financial Services name, KSPY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KSPY-specific events.
KSPY 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. KSPY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KSPY alongside the broader basket even when KSPY-specific fundamentals are unchanged. Short-premium structures like a iron condor on KSPY carry tail risk when realized volatility exceeds the implied move; review historical KSPY earnings reactions and macro stress periods before sizing. Always rebuild the position from current KSPY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on KSPY?
- A iron condor on KSPY is the iron condor strategy applied to KSPY (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 KSPY etf trading near $28.72, the strikes shown on this page are snapped to the nearest listed KSPY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KSPY 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 KSPY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), 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 KSPY iron condor?
- The breakeven for the KSPY 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 KSPY market-implied 1-standard-deviation expected move is approximately 10.09%; 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 KSPY?
- Iron condors on KSPY are a delta-neutral premium-collection structure that profits if KSPY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current KSPY implied volatility affect this iron condor?
- KSPY ATM IV is at 35.20% with IV rank near 27.98%, 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.