ALKS Iron Condor Strategy
ALKS (Alkermes plc), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Alkermes plc, a biopharmaceutical company, researches, develops, and commercializes pharmaceutical products to address unmet medical needs of patients in various therapeutic areas in the United States, Ireland, and internationally. Its marketed products include ARISTADA, an intramuscular injectable suspension for the treatment of schizophrenia; VIVITROL for the treatment of alcohol and prevention of opioid dependence; RISPERDAL CONSTA for the treatment of schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia and schizoaffective disorder; XEPLION, INVEGA TRINZA, and TREVICTA to treat schizophrenia and schizoaffective; and VUMERITY for the treatment of relapsing forms of multiple sclerosis in adults, including clinically isolated syndrome, relapsing-remitting and active secondary progressive diseases. The company is also developing LYBALVI, an oral atypical antipsychotic drug candidate for the treatment of adults with schizophrenia and bipolar I disorder; and nemvaleukin alfa, an engineered fusion protein to expand tumor-killing immune cells and to avoid the activation of immunosuppressive cells. It has collaboration agreements primarily with Janssen Pharmaceutica N.V., Janssen Pharmaceutica Inc, and Janssen Pharmaceutica International. Alkermes plc was founded in 1987 and is headquartered in Dublin, Ireland.
ALKS (Alkermes plc) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.49B, a trailing P/E of 42.34, a beta of 0.26 versus the broader market, a 52-week range of 25.17-39.56, average daily share volume of 2.4M, a public-listing history dating back to 1991, approximately 2K full-time employees. These structural characteristics shape how ALKS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.26 indicates ALKS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 42.34 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a iron condor on ALKS?
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 ALKS snapshot
As of May 15, 2026, spot at $37.66, ATM IV 38.80%, IV rank 10.25%, expected move 11.12%. The iron condor on ALKS 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 ALKS specifically: ALKS IV at 38.80% is on the cheap side of its 1-year range, which means a premium-selling ALKS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.12% (roughly $4.19 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 ALKS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALKS should anchor to the underlying notional of $37.66 per share and to the trader's directional view on ALKS stock.
ALKS iron condor setup
The ALKS 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 ALKS near $37.66, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALKS 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 ALKS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $40.00 | $0.93 |
| Buy 1 | Call | $41.00 | $0.80 |
| Sell 1 | Put | $36.00 | $1.08 |
| Buy 1 | Put | $34.00 | $0.58 |
ALKS iron condor risk and reward
- Net Premium / Debit
- +$62.50
- Max Profit (per contract)
- $62.50
- Max Loss (per contract)
- -$137.50
- Breakeven(s)
- $35.38, $40.63
- Risk / Reward Ratio
- 0.455
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.
ALKS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ALKS. 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% | -$137.50 |
| $8.34 | -77.9% | -$137.50 |
| $16.66 | -55.8% | -$137.50 |
| $24.99 | -33.7% | -$137.50 |
| $33.31 | -11.5% | -$137.50 |
| $41.64 | +10.6% | -$37.50 |
| $49.96 | +32.7% | -$37.50 |
| $58.29 | +54.8% | -$37.50 |
| $66.62 | +76.9% | -$37.50 |
| $74.94 | +99.0% | -$37.50 |
When traders use iron condor on ALKS
Iron condors on ALKS are a delta-neutral premium-collection structure that profits if ALKS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ALKS thesis for this iron condor
The market-implied 1-standard-deviation range for ALKS extends from approximately $33.47 on the downside to $41.85 on the upside. A ALKS iron condor is a delta-neutral premium-collection structure that pays off when ALKS 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 ALKS IV rank near 10.25% 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 ALKS at 38.80%. As a Healthcare name, ALKS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALKS-specific events.
ALKS 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. ALKS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALKS alongside the broader basket even when ALKS-specific fundamentals are unchanged. Short-premium structures like a iron condor on ALKS carry tail risk when realized volatility exceeds the implied move; review historical ALKS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALKS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ALKS?
- A iron condor on ALKS is the iron condor strategy applied to ALKS (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 ALKS stock trading near $37.66, the strikes shown on this page are snapped to the nearest listed ALKS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALKS 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 ALKS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 38.80%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALKS iron condor?
- The breakeven for the ALKS iron condor priced on this page is roughly $35.38 and $40.63 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 ALKS market-implied 1-standard-deviation expected move is approximately 11.12%; 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 ALKS?
- Iron condors on ALKS are a delta-neutral premium-collection structure that profits if ALKS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ALKS implied volatility affect this iron condor?
- ALKS ATM IV is at 38.80% with IV rank near 10.25%, 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.