BDTX Iron Condor Strategy
BDTX (Black Diamond Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Black Diamond Therapeutics, Inc. is a biotechnology enterprise dedicated to discovering, advancing, and bringing to market therapeutic agents specifically designed for patients with genetically characterized tumors. A core part of its pipeline is BDTX-189, an irreversible small molecule inhibitor. This compound is engineered to neutralize oncogenic proteins driven by non-canonical epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2) driver mutations. The firm is also progressing BDTX-1535, a brain-penetrant inhibitor addressing a range of EGFR mutations, including conventional, inherent resistance, and acquired resistance forms. Concurrently, it is advancing BDTX-4933, another brain-penetrant inhibitor targeting oncogenic BRAF alterations across Class I, II, and III categories. Black Diamond maintains a strategic alliance with OpenEye Scientific Software, Inc.
BDTX (Black Diamond Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $120.3M, a beta of 3.29 versus the broader market, a 52-week range of 1.6-4.94, average daily share volume of 1.4M, a public-listing history dating back to 2020, approximately 21 full-time employees. These structural characteristics shape how BDTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.29 indicates BDTX 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 BDTX?
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.
BDTX snapshot
As of August 14, 2026, spot at $2.04, ATM IV 48.00%, IV rank 6.00%, expected move 13.76%. The iron condor on BDTX 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 BDTX specifically: BDTX IV at 48.00% is on the cheap side of its 1-year range, which means a premium-selling BDTX iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.76% (roughly $0.28 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 BDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDTX should anchor to the underlying notional of $2.04 per share and to the trader's directional view on BDTX stock.
BDTX iron condor setup
The BDTX 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 BDTX at $2.04 on that close, 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 BDTX 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 BDTX 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 |
BDTX 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.
BDTX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on BDTX. 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 BDTX
Iron condors on BDTX are a delta-neutral premium-collection structure that profits if BDTX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
BDTX thesis for this iron condor
The market-implied 1-standard-deviation range for BDTX extends from approximately $1.76 on the downside to $2.32 on the upside. A BDTX iron condor is a delta-neutral premium-collection structure that pays off when BDTX 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 BDTX IV rank near 6.00% 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 BDTX at 48.00%. As a Healthcare name, BDTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDTX-specific events.
BDTX 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. BDTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDTX alongside the broader basket even when BDTX-specific fundamentals are unchanged. Short-premium structures like a iron condor on BDTX carry tail risk when realized volatility exceeds the implied move; review historical BDTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current BDTX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on BDTX?
- A iron condor on BDTX is the iron condor strategy applied to BDTX (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 BDTX stock at $2.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed BDTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BDTX 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 BDTX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 48.00%), 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 BDTX iron condor?
- The breakeven for the BDTX 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 BDTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.76%; 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 BDTX?
- Iron condors on BDTX are a delta-neutral premium-collection structure that profits if BDTX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current BDTX implied volatility affect this iron condor?
- BDTX ATM IV is at 48.00% with IV rank near 6.00%, 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.