BDN Iron Condor Strategy
BDN (Brandywine Realty Trust), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Austin and Washington, D.C. markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 175 properties and 24.7 million square feet as of December 31, 2020 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.
BDN (Brandywine Realty Trust) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $524.6M, a beta of 1.26 versus the broader market, a 52-week range of 2.47-4.63, average daily share volume of 2.6M, a public-listing history dating back to 1986, approximately 285 full-time employees. These structural characteristics shape how BDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places BDN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BDN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on BDN?
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 BDN snapshot
As of May 15, 2026, spot at $2.99, ATM IV 498.60%, IV rank 100.00%, expected move 142.94%. The iron condor on BDN 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 BDN specifically: BDN IV at 498.60% is rich versus its 1-year range, which favors premium-selling structures like a BDN iron condor, with a market-implied 1-standard-deviation move of approximately 142.94% (roughly $4.27 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 BDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDN should anchor to the underlying notional of $2.99 per share and to the trader's directional view on BDN stock.
BDN iron condor setup
The BDN 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 BDN near $2.99, the first option leg uses a $3.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDN 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 BDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $3.14 | N/A |
| Buy 1 | Call | $3.29 | N/A |
| Sell 1 | Put | $2.84 | N/A |
| Buy 1 | Put | $2.69 | N/A |
BDN 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.
BDN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on BDN. 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 BDN
Iron condors on BDN are a delta-neutral premium-collection structure that profits if BDN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
BDN thesis for this iron condor
The market-implied 1-standard-deviation range for BDN extends from approximately $-1.28 on the downside to $7.26 on the upside. A BDN iron condor is a delta-neutral premium-collection structure that pays off when BDN 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 BDN IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on BDN at 498.60%. As a Real Estate name, BDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDN-specific events.
BDN 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. BDN positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDN alongside the broader basket even when BDN-specific fundamentals are unchanged. Short-premium structures like a iron condor on BDN carry tail risk when realized volatility exceeds the implied move; review historical BDN earnings reactions and macro stress periods before sizing. Always rebuild the position from current BDN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on BDN?
- A iron condor on BDN is the iron condor strategy applied to BDN (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 BDN stock trading near $2.99, the strikes shown on this page are snapped to the nearest listed BDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BDN 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 BDN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 498.60%), 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 BDN iron condor?
- The breakeven for the BDN 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 BDN market-implied 1-standard-deviation expected move is approximately 142.94%; 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 BDN?
- Iron condors on BDN are a delta-neutral premium-collection structure that profits if BDN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current BDN implied volatility affect this iron condor?
- BDN ATM IV is at 498.60% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.