How are AMBA 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 AMBA iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 78.06%), the computed maximum profit is -$50.00 per contract and the computed maximum loss is -$450.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AMBA iron condor?

The breakeven for the AMBA iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 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 AMBA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AMBA implied volatility affect this iron condor?

AMBA ATM IV is at 78.06% with IV rank near 57.05%, 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.

AMBA Iron Condor Strategy

AMBA (Ambarella, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Ambarella, Inc. is a global semiconductor company specializing in advanced video processing technology. They develop chips that facilitate high-definition (HD) and ultra-HD (UHD) video compression, sophisticated image manipulation, and cutting-edge deep learning capabilities. Their core offering comprises highly integrated system-on-a-chip (SoC) designs. These single-chip solutions seamlessly combine HD video and image processing, artificial intelligence (AI) computer vision, audio processing, and various system functions, resulting in superior video and image clarity, distinct features, and efficient power usage. Ambarella's technology finds broad application across diverse markets. In the automotive sector, their chips power devices like vehicle dashcams, digital rearview mirrors, advanced driver-assistance systems (ADAS) cameras, interior and driver monitoring systems, and central domain controllers for self-driving vehicles.

AMBA (Ambarella, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.60B, a beta of 2.12 versus the broader market, a 52-week range of 48.3-96.69, average daily share volume of 1.5M, a public-listing history dating back to 2012, approximately 959 full-time employees. These structural characteristics shape how AMBA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.12 indicates AMBA 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 AMBA?

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.

AMBA snapshot

As of August 14, 2026, spot at $81.78, ATM IV 78.06%, IV rank 57.05%, expected move 22.38%. The iron condor on AMBA below is built from the August 14, 2026 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 AMBA specifically: AMBA IV at 78.06% is mid-range versus its 1-year history, so the credit collected on a AMBA iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 22.38% (roughly $18.30 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 AMBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMBA should anchor to the underlying notional of $81.78 per share and to the trader's directional view on AMBA stock.

AMBA iron condor setup

The AMBA iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AMBA at $81.78 on that close, the first option leg uses a $86.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMBA 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 AMBA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$86.00	$5.20
Buy 1	Call	$90.00	$5.60
Sell 1	Put	$78.00	$5.05
Buy 1	Put	$74.00	$5.15

AMBA iron condor risk and reward

Net Premium / Debit: -$50.00
Max Profit (per contract): -$50.00
Max Loss (per contract): -$450.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: -0.111

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.

AMBA iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on AMBA. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$450.00
$18.09	-77.9%	-$450.00
$36.17	-55.8%	-$450.00
$54.25	-33.7%	-$450.00
$72.33	-11.6%	-$450.00
$90.41	+10.6%	-$450.00
$108.50	+32.7%	-$450.00
$126.58	+54.8%	-$450.00
$144.66	+76.9%	-$450.00
$162.74	+99.0%	-$450.00

When traders use iron condor on AMBA

Iron condors on AMBA are a delta-neutral premium-collection structure that profits if AMBA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

AMBA thesis for this iron condor

The market-implied 1-standard-deviation range for AMBA extends from approximately $63.48 on the downside to $100.08 on the upside. A AMBA iron condor is a delta-neutral premium-collection structure that pays off when AMBA 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 AMBA IV rank near 57.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on AMBA should anchor more to the directional view and the expected-move geometry. As a Technology name, AMBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMBA-specific events.

AMBA 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. AMBA positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMBA alongside the broader basket even when AMBA-specific fundamentals are unchanged. Short-premium structures like a iron condor on AMBA carry tail risk when realized volatility exceeds the implied move; review historical AMBA earnings reactions and macro stress periods before sizing. Always rebuild the position from current AMBA chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on AMBA?: A iron condor on AMBA is the iron condor strategy applied to AMBA (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 AMBA stock at $81.78 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AMBA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AMBA 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 AMBA iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 78.06%), the computed maximum profit is -$50.00 per contract and the computed maximum loss is -$450.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMBA iron condor?: The breakeven for the AMBA iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 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 AMBA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.38%; 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 AMBA?: Iron condors on AMBA are a delta-neutral premium-collection structure that profits if AMBA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current AMBA implied volatility affect this iron condor?: AMBA ATM IV is at 78.06% with IV rank near 57.05%, 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.