How are RDVY 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 RDVY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 19.10%), the computed maximum profit is $123.00 per contract and the computed maximum loss is -$277.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RDVY iron condor?

The breakeven for the RDVY iron condor priced on this page is roughly $68.77 and $78.23 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 RDVY market-implied 1-standard-deviation expected move is approximately 5.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RDVY implied volatility affect this iron condor?

RDVY ATM IV is at 19.10% with IV rank near 1.72%, 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.

RDVY Iron Condor Strategy

RDVY (First Trust Rising Dividend Achievers ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Fund seeks investment results that correspond generally to the price and yield (before the fees and expenses) of the Nasdaq US Rising Dividend Achievers Index (the "Index"). The Fund will normally invest at least 90% of its net assets (plus the amount of any borrowings for investment purposes) in securities that comprise the Index. The Index is comprised of a selection of companies with a history of raising their dividends and that exhibit the characteristics to potentially continue doing so in the future. The Index construction process considers a company's earnings growth, levels of cash compared to debt and the amount of earnings that are paid out as dividends.

RDVY (First Trust Rising Dividend Achievers ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $21.90B, a beta of 1.04 versus the broader market, a 52-week range of 59.01-75.747, average daily share volume of 1.4M, a public-listing history dating back to 2014. These structural characteristics shape how RDVY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places RDVY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RDVY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on RDVY?

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 RDVY snapshot

As of May 15, 2026, spot at $73.73, ATM IV 19.10%, IV rank 1.72%, expected move 5.48%. The iron condor on RDVY 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 RDVY specifically: RDVY IV at 19.10% is on the cheap side of its 1-year range, which means a premium-selling RDVY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.48% (roughly $4.04 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 RDVY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDVY should anchor to the underlying notional of $73.73 per share and to the trader's directional view on RDVY etf.

RDVY iron condor setup

The RDVY 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 RDVY near $73.73, the first option leg uses a $77.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDVY 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 RDVY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$77.00	$1.04
Buy 1	Call	$80.00	$0.42
Sell 1	Put	$70.00	$0.82
Buy 1	Put	$66.00	$0.21

RDVY iron condor risk and reward

Net Premium / Debit: +$123.00
Max Profit (per contract): $123.00
Max Loss (per contract): -$277.00
Breakeven(s): $68.77, $78.23
Risk / Reward Ratio: 0.444

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.

RDVY iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on RDVY. 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%	-$277.00
$16.31	-77.9%	-$277.00
$32.61	-55.8%	-$277.00
$48.91	-33.7%	-$277.00
$65.21	-11.6%	-$277.00
$81.52	+10.6%	-$177.00
$97.82	+32.7%	-$177.00
$114.12	+54.8%	-$177.00
$130.42	+76.9%	-$177.00
$146.72	+99.0%	-$177.00

When traders use iron condor on RDVY

Iron condors on RDVY are a delta-neutral premium-collection structure that profits if RDVY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

RDVY thesis for this iron condor

The market-implied 1-standard-deviation range for RDVY extends from approximately $69.69 on the downside to $77.77 on the upside. A RDVY iron condor is a delta-neutral premium-collection structure that pays off when RDVY 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 RDVY IV rank near 1.72% 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 RDVY at 19.10%. As a Financial Services name, RDVY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDVY-specific events.

RDVY 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. RDVY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RDVY alongside the broader basket even when RDVY-specific fundamentals are unchanged. Short-premium structures like a iron condor on RDVY carry tail risk when realized volatility exceeds the implied move; review historical RDVY earnings reactions and macro stress periods before sizing. Always rebuild the position from current RDVY chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on RDVY?: A iron condor on RDVY is the iron condor strategy applied to RDVY (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 RDVY etf trading near $73.73, the strikes shown on this page are snapped to the nearest listed RDVY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RDVY 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 RDVY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 19.10%), the computed maximum profit is $123.00 per contract and the computed maximum loss is -$277.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RDVY iron condor?: The breakeven for the RDVY iron condor priced on this page is roughly $68.77 and $78.23 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 RDVY market-implied 1-standard-deviation expected move is approximately 5.48%; 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 RDVY?: Iron condors on RDVY are a delta-neutral premium-collection structure that profits if RDVY etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current RDVY implied volatility affect this iron condor?: RDVY ATM IV is at 19.10% with IV rank near 1.72%, 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.