PILL Iron Condor Strategy
PILL (Direxion Daily Pharmaceutical & Medical Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Daily Pharmaceutical & Medical Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Pharmaceuticals Select Industry Index. There is no guarantee the fund will achieve its stated investment objective.
PILL (Direxion Daily Pharmaceutical & Medical Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $27.0M, a beta of 2.23 versus the broader market, a 52-week range of 4.72-14.25, average daily share volume of 88K, a public-listing history dating back to 2017. These structural characteristics shape how PILL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.23 indicates PILL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PILL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PILL?
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 PILL snapshot
As of May 15, 2026, spot at $11.66, ATM IV 73.00%, IV rank 11.32%, expected move 20.93%. The iron condor on PILL 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 63-day expiry.
Why this iron condor structure on PILL specifically: PILL IV at 73.00% is on the cheap side of its 1-year range, which means a premium-selling PILL iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.93% (roughly $2.44 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PILL expiries trade a higher absolute premium for lower per-day decay. Position sizing on PILL should anchor to the underlying notional of $11.66 per share and to the trader's directional view on PILL etf.
PILL iron condor setup
The PILL 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 PILL near $11.66, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PILL chain at a 63-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 PILL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $12.00 | $1.35 |
| Buy 1 | Call | $13.00 | $0.98 |
| Sell 1 | Put | $11.00 | $1.08 |
| Buy 1 | Put | $10.00 | $0.65 |
PILL iron condor risk and reward
- Net Premium / Debit
- +$80.00
- Max Profit (per contract)
- $80.00
- Max Loss (per contract)
- -$20.00
- Breakeven(s)
- $10.20, $12.80
- Risk / Reward Ratio
- 4.000
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.
PILL iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PILL. 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 | -99.9% | -$20.00 |
| $2.59 | -77.8% | -$20.00 |
| $5.16 | -55.7% | -$20.00 |
| $7.74 | -33.6% | -$20.00 |
| $10.32 | -11.5% | +$11.79 |
| $12.89 | +10.6% | -$9.49 |
| $15.47 | +32.7% | -$20.00 |
| $18.05 | +54.8% | -$20.00 |
| $20.63 | +76.9% | -$20.00 |
| $23.20 | +99.0% | -$20.00 |
When traders use iron condor on PILL
Iron condors on PILL are a delta-neutral premium-collection structure that profits if PILL etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PILL thesis for this iron condor
The market-implied 1-standard-deviation range for PILL extends from approximately $9.22 on the downside to $14.10 on the upside. A PILL iron condor is a delta-neutral premium-collection structure that pays off when PILL 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 PILL IV rank near 11.32% 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 PILL at 73.00%. As a Financial Services name, PILL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PILL-specific events.
PILL 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. PILL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PILL alongside the broader basket even when PILL-specific fundamentals are unchanged. Short-premium structures like a iron condor on PILL carry tail risk when realized volatility exceeds the implied move; review historical PILL earnings reactions and macro stress periods before sizing. Always rebuild the position from current PILL chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PILL?
- A iron condor on PILL is the iron condor strategy applied to PILL (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 PILL etf trading near $11.66, the strikes shown on this page are snapped to the nearest listed PILL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PILL 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 PILL iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 73.00%), the computed maximum profit is $80.00 per contract and the computed maximum loss is -$20.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PILL iron condor?
- The breakeven for the PILL iron condor priced on this page is roughly $10.20 and $12.80 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 PILL market-implied 1-standard-deviation expected move is approximately 20.93%; 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 PILL?
- Iron condors on PILL are a delta-neutral premium-collection structure that profits if PILL etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PILL implied volatility affect this iron condor?
- PILL ATM IV is at 73.00% with IV rank near 11.32%, 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.