MAGX Iron Condor Strategy
MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The Roundhill Daily 2X Long Magnificent Seven ETF (the “Fund”) seeks daily leveraged investment results, before fees and expenses, that correspond to two times (2X) the performance of the Roundhill Magnificent Seven ETF (the “Magnificent Seven ETF”). The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day. As a result, the Fund may be riskier than alternatives that do not use leverage because the Fund’s objective is to magnify the daily performance of the Magnificent Seven ETF. The Fund has a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from two times (2X) the Magnificent Seven ETF’s performance, before fees and expenses.
MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $55.1M, a beta of 2.96 versus the broader market, a 52-week range of 36.23-63.47, average daily share volume of 101K, a public-listing history dating back to 2024. These structural characteristics shape how MAGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.96 indicates MAGX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on MAGX?
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 MAGX snapshot
As of May 15, 2026, spot at $61.47, ATM IV 43.70%, IV rank 14.48%, expected move 12.53%. The iron condor on MAGX 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 MAGX specifically: MAGX IV at 43.70% is on the cheap side of its 1-year range, which means a premium-selling MAGX iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $7.70 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 MAGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGX should anchor to the underlying notional of $61.47 per share and to the trader's directional view on MAGX etf.
MAGX iron condor setup
The MAGX 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 MAGX near $61.47, the first option leg uses a $64.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGX 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 MAGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $64.67 | $2.63 |
| Buy 1 | Call | $69.67 | $0.95 |
| Sell 1 | Put | $58.67 | $2.50 |
| Buy 1 | Put | $55.67 | $2.08 |
MAGX iron condor risk and reward
- Net Premium / Debit
- +$210.00
- Max Profit (per contract)
- $210.00
- Max Loss (per contract)
- -$290.00
- Breakeven(s)
- $56.57, $66.77
- Risk / Reward Ratio
- 0.724
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.
MAGX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MAGX. 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% | -$90.00 |
| $13.60 | -77.9% | -$90.00 |
| $27.19 | -55.8% | -$90.00 |
| $40.78 | -33.7% | -$90.00 |
| $54.37 | -11.5% | -$90.00 |
| $67.96 | +10.6% | -$119.13 |
| $81.55 | +32.7% | -$290.00 |
| $95.14 | +54.8% | -$290.00 |
| $108.73 | +76.9% | -$290.00 |
| $122.32 | +99.0% | -$290.00 |
When traders use iron condor on MAGX
Iron condors on MAGX are a delta-neutral premium-collection structure that profits if MAGX etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MAGX thesis for this iron condor
The market-implied 1-standard-deviation range for MAGX extends from approximately $53.77 on the downside to $69.17 on the upside. A MAGX iron condor is a delta-neutral premium-collection structure that pays off when MAGX 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 MAGX IV rank near 14.48% 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 MAGX at 43.70%. As a Financial Services name, MAGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGX-specific events.
MAGX 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. MAGX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGX alongside the broader basket even when MAGX-specific fundamentals are unchanged. Short-premium structures like a iron condor on MAGX carry tail risk when realized volatility exceeds the implied move; review historical MAGX earnings reactions and macro stress periods before sizing. Always rebuild the position from current MAGX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MAGX?
- A iron condor on MAGX is the iron condor strategy applied to MAGX (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 MAGX etf trading near $61.47, the strikes shown on this page are snapped to the nearest listed MAGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAGX 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 MAGX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $210.00 per contract and the computed maximum loss is -$290.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAGX iron condor?
- The breakeven for the MAGX iron condor priced on this page is roughly $56.57 and $66.77 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 MAGX market-implied 1-standard-deviation expected move is approximately 12.53%; 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 MAGX?
- Iron condors on MAGX are a delta-neutral premium-collection structure that profits if MAGX etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MAGX implied volatility affect this iron condor?
- MAGX ATM IV is at 43.70% with IV rank near 14.48%, 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.