TDIV Iron Condor Strategy
TDIV (First Trust NASDAQ Technology Dividend Index Fund), in the Financial Services sector, (Asset Management - Income industry), listed on NASDAQ.
The First Trust NASDAQ Technology Dividend Index Fund (TDIV) functions as an exchange-traded fund (ETF). Its core objective is to mirror the overall returns, encompassing both share value appreciation and dividend income, of a particular stock market benchmark known as the Nasdaq Technology Dividend Index. This performance alignment is calculated before any of the Fund's own management fees or operational expenses are deducted.
TDIV (First Trust NASDAQ Technology Dividend Index Fund) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $4.60B, a beta of 1.30 versus the broader market, a 52-week range of 88.58-128.5, average daily share volume of 116K, a public-listing history dating back to 2012. These structural characteristics shape how TDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places TDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TDIV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on TDIV?
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 TDIV snapshot
As of June 30, 2026, spot at $115.22, ATM IV 21.00%, IV rank 2.58%, expected move 6.02%. The iron condor on TDIV 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 17-day expiry.
Why this iron condor structure on TDIV specifically: TDIV IV at 21.00% is on the cheap side of its 1-year range, which means a premium-selling TDIV iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.02% (roughly $6.94 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDIV should anchor to the underlying notional of $115.22 per share and to the trader's directional view on TDIV etf.
TDIV iron condor setup
The TDIV 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 TDIV near $115.22, the first option leg uses a $121.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDIV chain at a 17-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 TDIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $121.00 | $0.29 |
| Buy 1 | Call | $127.00 | $0.02 |
| Sell 1 | Put | $109.00 | $0.50 |
| Buy 1 | Put | $104.00 | $0.07 |
TDIV iron condor risk and reward
- Net Premium / Debit
- +$70.00
- Max Profit (per contract)
- $70.00
- Max Loss (per contract)
- -$530.00
- Breakeven(s)
- $108.30, $121.70
- Risk / Reward Ratio
- 0.132
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.
TDIV iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TDIV. 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% | -$430.00 |
| $25.48 | -77.9% | -$430.00 |
| $50.96 | -55.8% | -$430.00 |
| $76.43 | -33.7% | -$430.00 |
| $101.91 | -11.6% | -$430.00 |
| $127.38 | +10.6% | -$530.00 |
| $152.86 | +32.7% | -$530.00 |
| $178.33 | +54.8% | -$530.00 |
| $203.81 | +76.9% | -$530.00 |
| $229.28 | +99.0% | -$530.00 |
When traders use iron condor on TDIV
Iron condors on TDIV are a delta-neutral premium-collection structure that profits if TDIV etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TDIV thesis for this iron condor
The market-implied 1-standard-deviation range for TDIV extends from approximately $108.28 on the downside to $122.16 on the upside. A TDIV iron condor is a delta-neutral premium-collection structure that pays off when TDIV 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 TDIV IV rank near 2.58% 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 TDIV at 21.00%. As a Financial Services name, TDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDIV-specific events.
TDIV 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. TDIV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDIV alongside the broader basket even when TDIV-specific fundamentals are unchanged. Short-premium structures like a iron condor on TDIV carry tail risk when realized volatility exceeds the implied move; review historical TDIV earnings reactions and macro stress periods before sizing. Always rebuild the position from current TDIV chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TDIV?
- A iron condor on TDIV is the iron condor strategy applied to TDIV (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 TDIV etf trading near $115.22, the strikes shown on this page are snapped to the nearest listed TDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TDIV 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 TDIV iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 21.00%), the computed maximum profit is $70.00 per contract and the computed maximum loss is -$530.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDIV iron condor?
- The breakeven for the TDIV iron condor priced on this page is roughly $108.30 and $121.70 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 TDIV market-implied 1-standard-deviation expected move is approximately 6.02%; 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 TDIV?
- Iron condors on TDIV are a delta-neutral premium-collection structure that profits if TDIV etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TDIV implied volatility affect this iron condor?
- TDIV ATM IV is at 21.00% with IV rank near 2.58%, 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.