ALXO Iron Condor Strategy
ALXO (ALX Oncology Holdings Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for patients fighting cancer. Its lead product candidate is ALX148, a CD47 blocking therapeutic that is in Phase 1b/2 clinical trial used for the treatment of myelodysplastic syndromes; and for the treatment of acute myeloid leukemia and non-Hodgkin's lymphoma, as well as a range of solid tumor indications, including head and neck squamous cell carcinoma, human epidermal growth factor receptor 2 (HER2) positive gastric/gastroesophageal junction carcinoma, HER2-expressing breast cancer, and other solid tumors. The company's pre-clinical products include ALTA-002, a SIRPa TRAAC that offers ways to engage the innate and adaptive immune response to cancer. ALX Oncology Holdings Inc. has a collaboration agreement with Merck for a Phase 2 trial evaluating ALX148 in combination with pembrolizumab with and without chemotherapy in patients with head and neck cancer; Zymeworks on a Phase 1 trial evaluating ALX148 with the HER2-targeting bispecific antibody zanidatamab in patients with HER2-expressing breast cancer and other solid tumors; and Tallac Therapeutics for the development, manufacturing and commercialization of a novel class of cancer immunotherapeutics. It also has a license agreement with Selexis SA and Crystal Bioscience, Inc. The company was founded in 2015 and is headquartered in South San Francisco, California.
ALXO (ALX Oncology Holdings Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $110.1M, a beta of 0.41 versus the broader market, a 52-week range of 0.404-2.66, average daily share volume of 928K, a public-listing history dating back to 2020, approximately 65 full-time employees. These structural characteristics shape how ALXO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.41 indicates ALXO 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 ALXO?
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 ALXO snapshot
As of May 15, 2026, spot at $2.04, ATM IV 199.90%, IV rank 38.36%, expected move 57.31%. The iron condor on ALXO 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 ALXO specifically: ALXO IV at 199.90% is mid-range versus its 1-year history, so the credit collected on a ALXO iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 57.31% (roughly $1.17 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 ALXO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALXO should anchor to the underlying notional of $2.04 per share and to the trader's directional view on ALXO stock.
ALXO iron condor setup
The ALXO 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 ALXO near $2.04, the first option leg uses a $2.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALXO 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 ALXO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $2.14 | N/A |
| Buy 1 | Call | $2.24 | N/A |
| Sell 1 | Put | $1.94 | N/A |
| Buy 1 | Put | $1.84 | N/A |
ALXO 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.
ALXO iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ALXO. 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 ALXO
Iron condors on ALXO are a delta-neutral premium-collection structure that profits if ALXO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ALXO thesis for this iron condor
The market-implied 1-standard-deviation range for ALXO extends from approximately $0.87 on the downside to $3.21 on the upside. A ALXO iron condor is a delta-neutral premium-collection structure that pays off when ALXO 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 ALXO IV rank near 38.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on ALXO should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ALXO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALXO-specific events.
ALXO 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. ALXO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALXO alongside the broader basket even when ALXO-specific fundamentals are unchanged. Short-premium structures like a iron condor on ALXO carry tail risk when realized volatility exceeds the implied move; review historical ALXO earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALXO chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ALXO?
- A iron condor on ALXO is the iron condor strategy applied to ALXO (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 ALXO stock trading near $2.04, the strikes shown on this page are snapped to the nearest listed ALXO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALXO 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 ALXO iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 199.90%), 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 ALXO iron condor?
- The breakeven for the ALXO 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 ALXO market-implied 1-standard-deviation expected move is approximately 57.31%; 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 ALXO?
- Iron condors on ALXO are a delta-neutral premium-collection structure that profits if ALXO stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ALXO implied volatility affect this iron condor?
- ALXO ATM IV is at 199.90% with IV rank near 38.36%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.