How are AAOI 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 AAOI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 125.96%), the computed maximum profit is $685.00 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AAOI iron condor?

The breakeven for the AAOI iron condor priced on this page is roughly $134.46 and $164.53 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 AAOI market-implied 1-standard-deviation expected move is approximately 36.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AAOI implied volatility affect this iron condor?

AAOI ATM IV is at 125.96% with IV rank near 49.99%, 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.

AAOI Iron Condor Strategy

AAOI (Applied Optoelectronics, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Applied Optoelectronics, Inc. (AAOI) is a global technology firm specializing in the creation, production, and distribution of fiber-optic networking solutions. Its extensive product catalog features optical modules, a range of laser components, subassemblies, transceivers, and complete turn-key systems. The company also supplies critical infrastructure hardware such as headend, node, and distribution equipment. AAOI caters to a varied clientele, including internet data center operators, manufacturers of cable television and telecommunications equipment, and internet service providers, utilizing both direct and partner-based sales channels. Founded in 1997, Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas.

AAOI (Applied Optoelectronics, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $10.89B, a beta of 3.67 versus the broader market, a 52-week range of 18.5-233.67, average daily share volume of 12.9M, a public-listing history dating back to 2013, approximately 3K full-time employees. These structural characteristics shape how AAOI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.67 indicates AAOI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a iron condor on AAOI?

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 AAOI snapshot

As of June 29, 2026, spot at $149.69, ATM IV 125.96%, IV rank 49.99%, expected move 36.11%. The iron condor on AAOI 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 32-day expiry.

Why this iron condor structure on AAOI specifically: AAOI IV at 125.96% is mid-range versus its 1-year history, so the credit collected on a AAOI iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 36.11% (roughly $54.06 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AAOI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAOI should anchor to the underlying notional of $149.69 per share and to the trader's directional view on AAOI stock.

AAOI iron condor setup

The AAOI 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 AAOI near $149.69, the first option leg uses a $157.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAOI chain at a 32-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 AAOI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$157.50	$19.15
Buy 1	Call	$165.00	$16.10
Sell 1	Put	$142.00	$18.15
Buy 1	Put	$135.00	$14.35

AAOI iron condor risk and reward

Net Premium / Debit: +$685.00
Max Profit (per contract): $685.00
Max Loss (per contract): -$65.00
Breakeven(s): $134.46, $164.53
Risk / Reward Ratio: 10.538

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.

AAOI iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on AAOI. 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	-100.0%	-$15.00
$33.11	-77.9%	-$15.00
$66.20	-55.8%	-$15.00
$99.30	-33.7%	-$15.00
$132.39	-11.6%	-$15.00
$165.49	+10.6%	-$65.00
$198.59	+32.7%	-$65.00
$231.68	+54.8%	-$65.00
$264.78	+76.9%	-$65.00
$297.88	+99.0%	-$65.00

When traders use iron condor on AAOI

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

AAOI thesis for this iron condor

The market-implied 1-standard-deviation range for AAOI extends from approximately $95.63 on the downside to $203.75 on the upside. A AAOI iron condor is a delta-neutral premium-collection structure that pays off when AAOI 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 AAOI IV rank near 49.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on AAOI should anchor more to the directional view and the expected-move geometry. As a Technology name, AAOI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAOI-specific events.

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

Frequently asked questions

What is a iron condor on AAOI?: A iron condor on AAOI is the iron condor strategy applied to AAOI (stock). 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 AAOI stock trading near $149.69, the strikes shown on this page are snapped to the nearest listed AAOI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AAOI 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 AAOI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 125.96%), the computed maximum profit is $685.00 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AAOI iron condor?: The breakeven for the AAOI iron condor priced on this page is roughly $134.46 and $164.53 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 AAOI market-implied 1-standard-deviation expected move is approximately 36.11%; 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 AAOI?: Iron condors on AAOI are a delta-neutral premium-collection structure that profits if AAOI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current AAOI implied volatility affect this iron condor?: AAOI ATM IV is at 125.96% with IV rank near 49.99%, 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.