NERD Iron Condor Strategy
NERD (Roundhill Video Games ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing in the equity securities of Video Game Companies. It invests, under normal circumstances, at least 80% of its net assets (plus borrowings for investment purposes) in Video Games Companies. The fund is non-diversified.
NERD (Roundhill Video Games ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $14.6M, a beta of 0.95 versus the broader market, a 52-week range of 19.01-28.81, average daily share volume of 2K, a public-listing history dating back to 2019, approximately 783 full-time employees. These structural characteristics shape how NERD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places NERD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NERD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on NERD?
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.
NERD snapshot
As of August 14, 2026, spot at $23.01, ATM IV 29.10%, IV rank 17.04%, expected move 8.34%. The iron condor on NERD below is built from the 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 NERD specifically: NERD IV at 29.10% is on the cheap side of its 1-year range, which means a premium-selling NERD iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.34% (roughly $1.92 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 NERD expiries trade a higher absolute premium for lower per-day decay. Position sizing on NERD should anchor to the underlying notional of $23.01 per share and to the trader's directional view on NERD etf.
NERD iron condor setup
The NERD 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 NERD at $23.01 on that close, the first option leg uses a $24.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NERD 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 NERD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $24.16 | N/A |
| Buy 1 | Call | $25.31 | N/A |
| Sell 1 | Put | $21.86 | N/A |
| Buy 1 | Put | $20.71 | N/A |
NERD 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.
NERD iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NERD. 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 NERD
Iron condors on NERD are a delta-neutral premium-collection structure that profits if NERD etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NERD thesis for this iron condor
The market-implied 1-standard-deviation range for NERD extends from approximately $21.09 on the downside to $24.93 on the upside. A NERD iron condor is a delta-neutral premium-collection structure that pays off when NERD 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 NERD IV rank near 17.04% 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 NERD at 29.10%. As a Financial Services name, NERD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NERD-specific events.
NERD 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. NERD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NERD alongside the broader basket even when NERD-specific fundamentals are unchanged. Short-premium structures like a iron condor on NERD carry tail risk when realized volatility exceeds the implied move; review historical NERD earnings reactions and macro stress periods before sizing. Always rebuild the position from current NERD chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NERD?
- A iron condor on NERD is the iron condor strategy applied to NERD (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 NERD etf at $23.01 on the most recent close, the strikes shown on this page are snapped to the nearest listed NERD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NERD 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 NERD iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 29.10%), 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 NERD iron condor?
- The breakeven for the NERD iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NERD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.34%; 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 NERD?
- Iron condors on NERD are a delta-neutral premium-collection structure that profits if NERD etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NERD implied volatility affect this iron condor?
- NERD ATM IV is at 29.10% with IV rank near 17.04%, 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.