ALLO Iron Condor Strategy
ALLO (Allogene Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Allogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL. The company also develops ALLO-501, an anti-CD19 allogeneic CAR T cell product candidate that is in Phase I clinical trial for the treatment of R/R non-Hodgkin lymphoma; and ALLO-501A, which is in Phase I/II clinical trial for the treatment R/R large B-cell lymphoma or transformed follicular lymphoma. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-819, an allogeneic CAR T cell product candidates for the treatment of acute myeloid leukemia; and DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc., as well as clinical trial collaboration agreement with SpringWorks Therapeutics, Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates.
ALLO (Allogene Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $568.2M, a beta of 0.46 versus the broader market, a 52-week range of 0.94-4.46, average daily share volume of 9.6M, a public-listing history dating back to 2018, approximately 226 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 0.46 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.
Current ALLO snapshot
As of May 15, 2026, spot at $2.00, ATM IV 49.20%, IV rank 6.72%, expected move 14.11%. The iron condor on ALLO 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 ALLO specifically: ALLO IV at 49.20% 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 14.11% (roughly $0.28 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 ALLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALLO should anchor to the underlying notional of $2.00 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 near $2.00, the first option leg uses a $2.10 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 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 ALLO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $2.10 | N/A |
| Buy 1 | Call | $2.20 | N/A |
| Sell 1 | Put | $1.90 | N/A |
| Buy 1 | Put | $1.80 | 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 $1.72 on the downside to $2.28 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 6.72% 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 49.20%. 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 trading near $2.00, the strikes shown on this page are snapped to the nearest listed ALLO chain strike and the premiums come straight from the end-of-day 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 49.20%), 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 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 ALLO market-implied 1-standard-deviation expected move is approximately 14.11%; 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 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 49.20% with IV rank near 6.72%, 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.