ARQT Iron Condor Strategy
ARQT (Arcutis Biotherapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Arcutis Biotherapeutics, Inc. is a biopharmaceutical firm dedicated to developing and marketing therapies for a range of skin-related diseases. The company's flagship investigational compound, ARQ-151, a roflumilast cream administered topically, has successfully concluded late-stage clinical development for treating both plaque psoriasis and atopic dermatitis. Beyond its lead asset, Arcutis's pipeline includes several other promising compounds. Among these is ARQ-154, a roflumilast foam applied topically, aimed at seborrheic dermatitis and scalp psoriasis. Furthermore, ARQ-252, a topical selective Janus kinase type 1 (JAK1) inhibitor, is under investigation for hand eczema and vitiligo. ARQ-255, a variation of ARQ-252 designed for deeper dermal absorption, is being explored for alopecia areata.
ARQT (Arcutis Biotherapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.29B, a trailing P/E of 120.28, a beta of 1.53 versus the broader market, a 52-week range of 15.1-31.77, average daily share volume of 1.7M, a public-listing history dating back to 2020, approximately 354 full-time employees. These structural characteristics shape how ARQT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates ARQT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 120.28 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 ARQT?
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.
ARQT snapshot
As of August 14, 2026, spot at $25.92, ATM IV 42.30%, IV rank 10.01%, expected move 12.13%. The iron condor on ARQT 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 ARQT specifically: ARQT IV at 42.30% is on the cheap side of its 1-year range, which means a premium-selling ARQT iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.13% (roughly $3.14 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 ARQT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARQT should anchor to the underlying notional of $25.92 per share and to the trader's directional view on ARQT stock.
ARQT iron condor setup
The ARQT 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 ARQT at $25.92 on that close, the first option leg uses a $27.22 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARQT 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 ARQT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $27.22 | N/A |
| Buy 1 | Call | $28.51 | N/A |
| Sell 1 | Put | $24.62 | N/A |
| Buy 1 | Put | $23.33 | N/A |
ARQT 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.
ARQT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ARQT. 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 ARQT
Iron condors on ARQT are a delta-neutral premium-collection structure that profits if ARQT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ARQT thesis for this iron condor
The market-implied 1-standard-deviation range for ARQT extends from approximately $22.78 on the downside to $29.06 on the upside. A ARQT iron condor is a delta-neutral premium-collection structure that pays off when ARQT 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 ARQT IV rank near 10.01% 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 ARQT at 42.30%. As a Healthcare name, ARQT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARQT-specific events.
ARQT 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. ARQT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARQT alongside the broader basket even when ARQT-specific fundamentals are unchanged. Short-premium structures like a iron condor on ARQT carry tail risk when realized volatility exceeds the implied move; review historical ARQT earnings reactions and macro stress periods before sizing. Always rebuild the position from current ARQT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ARQT?
- A iron condor on ARQT is the iron condor strategy applied to ARQT (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 ARQT stock at $25.92 on the most recent close, the strikes shown on this page are snapped to the nearest listed ARQT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ARQT 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 ARQT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 42.30%), 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 ARQT iron condor?
- The breakeven for the ARQT 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 ARQT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.13%; 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 ARQT?
- Iron condors on ARQT are a delta-neutral premium-collection structure that profits if ARQT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ARQT implied volatility affect this iron condor?
- ARQT ATM IV is at 42.30% with IV rank near 10.01%, 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.