BMY Iron Condor Strategy
BMY (Bristol-Myers Squibb Company), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NYSE.
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, and markets biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases. The company's products include Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma; Eliquis, an oral inhibitor for reduction in risk of stroke/systemic embolism in NVAF, and for the treatment of DVT/PE; Opdivo for anti-cancer indications; Pomalyst/Imnovid indicated for patients with multiple myeloma; and Orencia for adult patients with active RA and psoriatic arthritis. It also provides Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia; Yervoy for the treatment of patients with unresectable or metastatic melanoma; Abraxane, a protein-bound chemotherapy product; Reblozyl for the treatment of anemia in adult patients with beta thalassemia; and Empliciti for the treatment of multiple myeloma. In addition, the company offers Zeposia to treat relapsing forms of multiple sclerosis; Breyanzi, a CD19-directed genetically modified autologous T cell immunotherapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma; Inrebic, an oral kinase inhibitor indicated for the treatment of adult patients with myelofibrosis; and Onureg for the treatment of adult patients with AML. It sells products to wholesalers, distributors, pharmacies, retailers, hospitals, clinics, and government agencies.
BMY (Bristol-Myers Squibb Company) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $115.15B, a trailing P/E of 15.84, a beta of 0.26 versus the broader market, a 52-week range of 42.52-62.89, average daily share volume of 12.0M, a public-listing history dating back to 1972, approximately 34K full-time employees. These structural characteristics shape how BMY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.26 indicates BMY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BMY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on BMY?
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 BMY snapshot
As of May 15, 2026, spot at $56.98, ATM IV 25.91%, IV rank 28.67%, expected move 7.43%. The iron condor on BMY 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 28-day expiry.
Why this iron condor structure on BMY specifically: BMY IV at 25.91% is on the cheap side of its 1-year range, which means a premium-selling BMY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.43% (roughly $4.23 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 BMY expiries trade a higher absolute premium for lower per-day decay. Position sizing on BMY should anchor to the underlying notional of $56.98 per share and to the trader's directional view on BMY stock.
BMY iron condor setup
The BMY 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 BMY near $56.98, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BMY 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 BMY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $60.00 | $0.61 |
| Buy 1 | Call | $63.00 | $0.19 |
| Sell 1 | Put | $54.00 | $0.54 |
| Buy 1 | Put | $51.00 | $0.22 |
BMY iron condor risk and reward
- Net Premium / Debit
- +$74.00
- Max Profit (per contract)
- $74.00
- Max Loss (per contract)
- -$226.00
- Breakeven(s)
- $53.26, $60.74
- Risk / Reward Ratio
- 0.327
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.
BMY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on BMY. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$226.00 |
| $12.61 | -77.9% | -$226.00 |
| $25.20 | -55.8% | -$226.00 |
| $37.80 | -33.7% | -$226.00 |
| $50.40 | -11.5% | -$226.00 |
| $63.00 | +10.6% | -$225.74 |
| $75.59 | +32.7% | -$226.00 |
| $88.19 | +54.8% | -$226.00 |
| $100.79 | +76.9% | -$226.00 |
| $113.39 | +99.0% | -$226.00 |
When traders use iron condor on BMY
Iron condors on BMY are a delta-neutral premium-collection structure that profits if BMY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
BMY thesis for this iron condor
The market-implied 1-standard-deviation range for BMY extends from approximately $52.75 on the downside to $61.21 on the upside. A BMY iron condor is a delta-neutral premium-collection structure that pays off when BMY 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 BMY IV rank near 28.67% 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 BMY at 25.91%. As a Healthcare name, BMY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BMY-specific events.
BMY 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. BMY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BMY alongside the broader basket even when BMY-specific fundamentals are unchanged. Short-premium structures like a iron condor on BMY carry tail risk when realized volatility exceeds the implied move; review historical BMY earnings reactions and macro stress periods before sizing. Always rebuild the position from current BMY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on BMY?
- A iron condor on BMY is the iron condor strategy applied to BMY (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 BMY stock trading near $56.98, the strikes shown on this page are snapped to the nearest listed BMY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BMY 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 BMY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 25.91%), the computed maximum profit is $74.00 per contract and the computed maximum loss is -$226.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BMY iron condor?
- The breakeven for the BMY iron condor priced on this page is roughly $53.26 and $60.74 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 BMY market-implied 1-standard-deviation expected move is approximately 7.43%; 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 BMY?
- Iron condors on BMY are a delta-neutral premium-collection structure that profits if BMY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current BMY implied volatility affect this iron condor?
- BMY ATM IV is at 25.91% with IV rank near 28.67%, 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.