ALLO Iron Condor Strategy
ALLO (Allogene Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Allogene Therapeutics, Inc. operates as a clinical-stage immuno-oncology firm dedicated to the creation and commercialization of genetically engineered allogeneic T-cell therapies for the treatment of various cancers. A pivotal product in their development pipeline is UCART19, an allogeneic chimeric antigen receptor (CAR) T-cell therapy. This candidate is being developed, manufactured, and prepared for market release to address relapsed/refractory (R/R) CD19-positive B-cell acute lymphoblastic leukemia (ALL) in both children and adults. The company's portfolio also encompasses ALLO-501, an anti-CD19 allogeneic CAR T-cell candidate currently in Phase I clinical trials for R/R non-Hodgkin lymphoma. A related therapeutic, ALLO-501A, is progressing through Phase I/II studies, targeting R/R large B-cell lymphoma or transformed follicular lymphoma. Furthermore, Allogene is advancing several other promising candidates: ALLO-715, an allogeneic CAR T-cell therapy in Phase I for R/R multiple myeloma; ALLO-605, another allogeneic CAR T-cell designed for multiple myeloma; and ALLO-647, an anti-CD52 monoclonal antibody.
ALLO (Allogene Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $707.6M, a beta of 0.47 versus the broader market, a 52-week range of 1.03-4.46, average daily share volume of 10.0M, a public-listing history dating back to 2018, approximately 151 full-time employees. These structural characteristics shape how ALLO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates ALLO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a iron condor on ALLO?
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.
ALLO snapshot
As of August 14, 2026, spot at $2.06, ATM IV 92.70%, IV rank 16.48%, expected move 26.58%. The iron condor on ALLO below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on ALLO specifically: ALLO IV at 92.70% is on the cheap side of its 1-year range, which means a premium-selling ALLO iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.58% (roughly $0.55 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALLO should anchor to the underlying notional of $2.06 per share and to the trader's directional view on ALLO stock.
ALLO iron condor setup
The ALLO 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 ALLO at $2.06 on that close, the first option leg uses a $2.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALLO chain at a 35-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 ALLO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $2.16 | N/A |
| Buy 1 | Call | $2.27 | N/A |
| Sell 1 | Put | $1.96 | N/A |
| Buy 1 | Put | $1.85 | N/A |
ALLO iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ALLO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ALLO. 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.
When traders use iron condor on ALLO
Iron condors on ALLO are a delta-neutral premium-collection structure that profits if ALLO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ALLO thesis for this iron condor
The market-implied 1-standard-deviation range for ALLO extends from approximately $1.51 on the downside to $2.61 on the upside. A ALLO iron condor is a delta-neutral premium-collection structure that pays off when ALLO 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 ALLO IV rank near 16.48% 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 ALLO at 92.70%. As a Healthcare name, ALLO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALLO-specific events.
ALLO 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. ALLO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALLO alongside the broader basket even when ALLO-specific fundamentals are unchanged. Short-premium structures like a iron condor on ALLO carry tail risk when realized volatility exceeds the implied move; review historical ALLO earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALLO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ALLO?
- A iron condor on ALLO is the iron condor strategy applied to ALLO (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 ALLO stock at $2.06 on the most recent close, the strikes shown on this page are snapped to the nearest listed ALLO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALLO 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 ALLO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 92.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALLO iron condor?
- The breakeven for the ALLO iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ALLO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.58%; 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 ALLO?
- Iron condors on ALLO are a delta-neutral premium-collection structure that profits if ALLO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ALLO implied volatility affect this iron condor?
- ALLO ATM IV is at 92.70% with IV rank near 16.48%, 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.