AI Iron Condor Strategy
AI (C3.ai, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It provides C3 AI application platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina to for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 AI Data Vision that visualizes, understands, and leverages the relationships between data entities. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which provides visibility into risks of disruption throughout the supply chain operations; C3 AI Customer Churn Management, which enables account executives and relationship managers to monitor customer satisfaction, as well as to prevent customer churn with AI-based and human-interpretable predictions and warning; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Predictive Maintenance, which provides insight into asset risk to maintenance planners and equipment operators; C3 AI Fraud Detection solution that identify revenue leakage or maintenance and safety issues; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market segments. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; FIS in the areas of financial services market; Raytheon; and AWS, Intel, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019.
AI (C3.ai, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $1.23B, a beta of 1.99 versus the broader market, a 52-week range of 7.675-30.24, average daily share volume of 5.7M, a public-listing history dating back to 2020, approximately 891 full-time employees. These structural characteristics shape how AI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.99 indicates AI 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 AI?
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 AI snapshot
As of May 15, 2026, spot at $8.70, ATM IV 87.75%, IV rank 80.52%, expected move 25.16%. The iron condor on AI 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 28-day expiry.
Why this iron condor structure on AI specifically: AI IV at 87.75% is rich versus its 1-year range, which favors premium-selling structures like a AI iron condor, with a market-implied 1-standard-deviation move of approximately 25.16% (roughly $2.19 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AI should anchor to the underlying notional of $8.70 per share and to the trader's directional view on AI stock.
AI iron condor setup
The AI 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 AI near $8.70, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AI chain at a 28-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 AI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $9.00 | $0.74 |
| Buy 1 | Call | $9.50 | $0.57 |
| Sell 1 | Put | $8.50 | $0.74 |
| Buy 1 | Put | $8.00 | $0.51 |
AI iron condor risk and reward
- Net Premium / Debit
- +$39.00
- Max Profit (per contract)
- $39.00
- Max Loss (per contract)
- -$11.00
- Breakeven(s)
- $8.11, $9.39
- Risk / Reward Ratio
- 3.545
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.
AI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on AI. 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 | -99.9% | -$11.00 |
| $1.93 | -77.8% | -$11.00 |
| $3.86 | -55.7% | -$11.00 |
| $5.78 | -33.6% | -$11.00 |
| $7.70 | -11.5% | -$11.00 |
| $9.62 | +10.6% | -$11.00 |
| $11.55 | +32.7% | -$11.00 |
| $13.47 | +54.8% | -$11.00 |
| $15.39 | +76.9% | -$11.00 |
| $17.31 | +99.0% | -$11.00 |
When traders use iron condor on AI
Iron condors on AI are a delta-neutral premium-collection structure that profits if AI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AI thesis for this iron condor
The market-implied 1-standard-deviation range for AI extends from approximately $6.51 on the downside to $10.89 on the upside. A AI iron condor is a delta-neutral premium-collection structure that pays off when AI 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 AI IV rank near 80.52% 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 AI at 87.75%. As a Technology name, AI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AI-specific events.
AI 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. AI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AI alongside the broader basket even when AI-specific fundamentals are unchanged. Short-premium structures like a iron condor on AI carry tail risk when realized volatility exceeds the implied move; review historical AI earnings reactions and macro stress periods before sizing. Always rebuild the position from current AI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AI?
- A iron condor on AI is the iron condor strategy applied to AI (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 AI stock trading near $8.70, the strikes shown on this page are snapped to the nearest listed AI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AI 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 AI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 87.75%), the computed maximum profit is $39.00 per contract and the computed maximum loss is -$11.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AI iron condor?
- The breakeven for the AI iron condor priced on this page is roughly $8.11 and $9.39 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 AI market-implied 1-standard-deviation expected move is approximately 25.16%; 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 AI?
- Iron condors on AI are a delta-neutral premium-collection structure that profits if AI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AI implied volatility affect this iron condor?
- AI ATM IV is at 87.75% with IV rank near 80.52%, 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.