AEHR Iron Condor Strategy
AEHR (Aehr Test Systems), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Aehr Test Systems, founded in 1977 and based in Fremont, California, specializes in the global provision of advanced burn-in and test systems for integrated circuits, encompassing logic, optical, and memory devices. Its extensive product lineup includes the ABTS and FOX-P families of test and burn-in solutions, complemented by specialized components such as the FOX WaferPak Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader. The ABTS system is specifically designed for both production and qualification assessments of packaged parts, covering a range of lower and higher power logic devices, as well as various memory types. For more complex integrated circuits like memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices, the FOX-XP and FOX-NP systems facilitate burn-in and functional testing at both the wafer and individual die/module levels. Aehr's FOX-CP system offers a compact, single-wafer solution for verifying the reliability of logic, memory, and photonic devices. A distinguishing offering, the WaferPak Contactor, features an exclusive full-wafer probe card, accommodating wafers up to 300mm, which enables semiconductor manufacturers to conduct comprehensive wafer-level testing and burn-in on Aehr's FOX platforms.
AEHR (Aehr Test Systems) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.89B, a beta of 3.18 versus the broader market, a 52-week range of 12.19-126.62, average daily share volume of 3.0M, a public-listing history dating back to 1997, approximately 115 full-time employees. These structural characteristics shape how AEHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.18 indicates AEHR 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 AEHR?
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 AEHR snapshot
As of June 30, 2026, spot at $96.66, ATM IV 154.13%, IV rank 77.93%, expected move 44.19%. The iron condor on AEHR 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 31-day expiry.
Why this iron condor structure on AEHR specifically: AEHR IV at 154.13% is rich versus its 1-year range, which favors premium-selling structures like a AEHR iron condor, with a market-implied 1-standard-deviation move of approximately 44.19% (roughly $42.71 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AEHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEHR should anchor to the underlying notional of $96.66 per share and to the trader's directional view on AEHR stock.
AEHR iron condor setup
The AEHR 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 AEHR near $96.66, the first option leg uses a $101.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEHR chain at a 31-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 AEHR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $101.00 | $15.45 |
| Buy 1 | Call | $106.00 | $13.50 |
| Sell 1 | Put | $92.00 | $14.20 |
| Buy 1 | Put | $87.00 | $11.75 |
AEHR iron condor risk and reward
- Net Premium / Debit
- +$440.00
- Max Profit (per contract)
- $440.00
- Max Loss (per contract)
- -$60.00
- Breakeven(s)
- $87.60, $105.40
- Risk / Reward Ratio
- 7.333
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.
AEHR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AEHR. 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% | -$60.00 |
| $21.38 | -77.9% | -$60.00 |
| $42.75 | -55.8% | -$60.00 |
| $64.12 | -33.7% | -$60.00 |
| $85.49 | -11.6% | -$60.00 |
| $106.86 | +10.6% | -$60.00 |
| $128.24 | +32.7% | -$60.00 |
| $149.61 | +54.8% | -$60.00 |
| $170.98 | +76.9% | -$60.00 |
| $192.35 | +99.0% | -$60.00 |
When traders use iron condor on AEHR
Iron condors on AEHR are a delta-neutral premium-collection structure that profits if AEHR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AEHR thesis for this iron condor
The market-implied 1-standard-deviation range for AEHR extends from approximately $53.95 on the downside to $139.37 on the upside. A AEHR iron condor is a delta-neutral premium-collection structure that pays off when AEHR 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 AEHR IV rank near 77.93% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on AEHR at 154.13%. As a Technology name, AEHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEHR-specific events.
AEHR 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. AEHR positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AEHR alongside the broader basket even when AEHR-specific fundamentals are unchanged. Short-premium structures like a iron condor on AEHR carry tail risk when realized volatility exceeds the implied move; review historical AEHR earnings reactions and macro stress periods before sizing. Always rebuild the position from current AEHR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AEHR?
- A iron condor on AEHR is the iron condor strategy applied to AEHR (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 AEHR stock trading near $96.66, the strikes shown on this page are snapped to the nearest listed AEHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AEHR 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 AEHR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 154.13%), the computed maximum profit is $440.00 per contract and the computed maximum loss is -$60.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AEHR iron condor?
- The breakeven for the AEHR iron condor priced on this page is roughly $87.60 and $105.40 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 AEHR market-implied 1-standard-deviation expected move is approximately 44.19%; 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 AEHR?
- Iron condors on AEHR are a delta-neutral premium-collection structure that profits if AEHR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AEHR implied volatility affect this iron condor?
- AEHR ATM IV is at 154.13% with IV rank near 77.93%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.