How are UDN 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 UDN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 256.50%), the computed maximum profit is $22.00 per contract and the computed maximum loss is -$78.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UDN iron condor?

The breakeven for the UDN iron condor priced on this page is roughly $16.78 and $19.22 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 UDN market-implied 1-standard-deviation expected move is approximately 73.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UDN implied volatility affect this iron condor?

UDN ATM IV is at 256.50% with IV rank near 51.90%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

UDN Iron Condor Strategy

UDN (Invesco DB US Dollar Index Bearish Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco DB US Dollar Index Bearish Fund (UDN) is designed to provide investors with exposure to the inverse performance of the U.S. dollar against a basket of key global currencies. Specifically, it aims to track the Deutsche Bank Short USD Currency Portfolio Index – Excess Return, while also incorporating net interest income generated from its holdings, primarily U.S. Treasury securities and money market instruments, after accounting for fund expenses. This Fund offers a streamlined and economical method for investors seeking to benefit from a decline in the U.S. dollar's value relative to six major world currencies: the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc. The underlying Index follows a rules-based approach, comprising exclusively "short" U.S. Dollar Index futures contracts, which are actively traded on the ICE futures exchange.

UDN (Invesco DB US Dollar Index Bearish Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $123.9M, a beta of 7.06 versus the broader market, a 52-week range of 17.75-19.11, average daily share volume of 133K, a public-listing history dating back to 2007. These structural characteristics shape how UDN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 7.06 indicates UDN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UDN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on UDN?

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 UDN snapshot

As of June 29, 2026, spot at $17.88, ATM IV 256.50%, IV rank 51.90%, expected move 73.54%. The iron condor on UDN 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 18-day expiry.

Why this iron condor structure on UDN specifically: UDN IV at 256.50% is mid-range versus its 1-year history, so the credit collected on a UDN iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 73.54% (roughly $13.15 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on UDN should anchor to the underlying notional of $17.88 per share and to the trader's directional view on UDN etf.

UDN iron condor setup

The UDN 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 UDN near $17.88, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UDN chain at a 18-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 UDN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$19.00	$0.13
Buy 1	Call	$20.00	$0.03
Sell 1	Put	$17.00	$0.14
Buy 1	Put	$16.00	$0.02

UDN iron condor risk and reward

Net Premium / Debit: +$22.00
Max Profit (per contract): $22.00
Max Loss (per contract): -$78.00
Breakeven(s): $16.78, $19.22
Risk / Reward Ratio: 0.282

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.

UDN iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on UDN. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$78.00
$3.96	-77.8%	-$78.00
$7.91	-55.7%	-$78.00
$11.87	-33.6%	-$78.00
$15.82	-11.5%	-$78.00
$19.77	+10.6%	-$55.13
$23.72	+32.7%	-$78.00
$27.68	+54.8%	-$78.00
$31.63	+76.9%	-$78.00
$35.58	+99.0%	-$78.00

When traders use iron condor on UDN

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

UDN thesis for this iron condor

The market-implied 1-standard-deviation range for UDN extends from approximately $4.73 on the downside to $31.03 on the upside. A UDN iron condor is a delta-neutral premium-collection structure that pays off when UDN 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 UDN IV rank near 51.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on UDN should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UDN-specific events.

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

Frequently asked questions

What is a iron condor on UDN?: A iron condor on UDN is the iron condor strategy applied to UDN (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 UDN etf trading near $17.88, the strikes shown on this page are snapped to the nearest listed UDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UDN 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 UDN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 256.50%), the computed maximum profit is $22.00 per contract and the computed maximum loss is -$78.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UDN iron condor?: The breakeven for the UDN iron condor priced on this page is roughly $16.78 and $19.22 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 UDN market-implied 1-standard-deviation expected move is approximately 73.54%; 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 UDN?: Iron condors on UDN are a delta-neutral premium-collection structure that profits if UDN etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current UDN implied volatility affect this iron condor?: UDN ATM IV is at 256.50% with IV rank near 51.90%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.