USAI Iron Condor Strategy
USAI (Pacer American Energy Infrastructure ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
A strategy-driven exchange traded fund (ETF) that aims to offer investors exposure to U.S. and Canadian companies that generate the majority of their cash flow from midstream energy infrastructure activities.
USAI (Pacer American Energy Infrastructure ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $111.1M, a beta of 0.42 versus the broader market, a 52-week range of 36.492-48.835, average daily share volume of 13K, a public-listing history dating back to 2017. These structural characteristics shape how USAI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates USAI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. USAI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on USAI?
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 USAI snapshot
As of May 15, 2026, spot at $47.30, ATM IV 32.90%, IV rank 24.60%, expected move 9.43%. The iron condor on USAI 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 34-day expiry.
Why this iron condor structure on USAI specifically: USAI IV at 32.90% is on the cheap side of its 1-year range, which means a premium-selling USAI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.43% (roughly $4.46 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated USAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on USAI should anchor to the underlying notional of $47.30 per share and to the trader's directional view on USAI etf.
USAI iron condor setup
The USAI 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 USAI near $47.30, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USAI chain at a 34-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 USAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $50.00 | $0.89 |
| Buy 1 | Call | $52.00 | $0.47 |
| Sell 1 | Put | $45.00 | $0.94 |
| Buy 1 | Put | $43.00 | $0.44 |
USAI iron condor risk and reward
- Net Premium / Debit
- +$92.00
- Max Profit (per contract)
- $92.00
- Max Loss (per contract)
- -$108.00
- Breakeven(s)
- $44.08, $50.92
- Risk / Reward Ratio
- 0.852
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.
USAI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on USAI. 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% | -$108.00 |
| $10.47 | -77.9% | -$108.00 |
| $20.92 | -55.8% | -$108.00 |
| $31.38 | -33.7% | -$108.00 |
| $41.84 | -11.5% | -$108.00 |
| $52.30 | +10.6% | -$108.00 |
| $62.75 | +32.7% | -$108.00 |
| $73.21 | +54.8% | -$108.00 |
| $83.67 | +76.9% | -$108.00 |
| $94.12 | +99.0% | -$108.00 |
When traders use iron condor on USAI
Iron condors on USAI are a delta-neutral premium-collection structure that profits if USAI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
USAI thesis for this iron condor
The market-implied 1-standard-deviation range for USAI extends from approximately $42.84 on the downside to $51.76 on the upside. A USAI iron condor is a delta-neutral premium-collection structure that pays off when USAI 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 USAI IV rank near 24.60% 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 USAI at 32.90%. As a Financial Services name, USAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USAI-specific events.
USAI 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. USAI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move USAI alongside the broader basket even when USAI-specific fundamentals are unchanged. Short-premium structures like a iron condor on USAI carry tail risk when realized volatility exceeds the implied move; review historical USAI earnings reactions and macro stress periods before sizing. Always rebuild the position from current USAI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on USAI?
- A iron condor on USAI is the iron condor strategy applied to USAI (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 USAI etf trading near $47.30, the strikes shown on this page are snapped to the nearest listed USAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are USAI 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 USAI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $92.00 per contract and the computed maximum loss is -$108.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a USAI iron condor?
- The breakeven for the USAI iron condor priced on this page is roughly $44.08 and $50.92 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 USAI market-implied 1-standard-deviation expected move is approximately 9.43%; 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 USAI?
- Iron condors on USAI are a delta-neutral premium-collection structure that profits if USAI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current USAI implied volatility affect this iron condor?
- USAI ATM IV is at 32.90% with IV rank near 24.60%, 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.