How are CDNS 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 CDNS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 57.19%), the computed maximum profit is $1,040.00 per contract and the computed maximum loss is -$960.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CDNS iron condor?

The breakeven for the CDNS iron condor priced on this page is roughly $344.60 and $405.40 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 CDNS market-implied 1-standard-deviation expected move is approximately 16.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CDNS implied volatility affect this iron condor?

CDNS ATM IV is at 57.19% 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.

CDNS Iron Condor Strategy

CDNS (Cadence Design Systems, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Cadence Design Systems, Inc. operates globally, delivering a comprehensive suite of solutions that includes software, specialized hardware, professional services, and pre-designed integrated circuit (IC) building blocks. The company's robust functional verification offerings feature dedicated emulation and prototyping hardware. This portfolio encompasses JasperGold for formal verification, Xcelium for parallel logic simulation, Palladium as an enterprise-grade emulation platform, and Protium, a prototyping platform designed for thorough chip verification. Cadence additionally provides extensive products for digital IC design and final sign-off. These include the Genus logic synthesis solution, Joules for RTL power analysis, and the Modus software solution, which streamlines design-for-test (DFT) processes for systems-on-chip. Their tools further extend to physical implementation, covering place and route, optimization, and multiple patterning preparation, alongside essential sign-off products for validating designs prior to silicon manufacturing.

CDNS (Cadence Design Systems, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $104.06B, a trailing P/E of 87.65, a beta of 1.15 versus the broader market, a 52-week range of 262.75-416.69, average daily share volume of 2.5M, a public-listing history dating back to 1987, approximately 13K full-time employees. These structural characteristics shape how CDNS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.15 places CDNS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 87.65 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 CDNS?

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 CDNS snapshot

As of June 29, 2026, spot at $375.21, ATM IV 57.19%, IV rank 100.00%, expected move 16.40%. The iron condor on CDNS 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 31-day expiry.

Why this iron condor structure on CDNS specifically: CDNS IV at 57.19% is rich versus its 1-year range, which favors premium-selling structures like a CDNS iron condor, with a market-implied 1-standard-deviation move of approximately 16.40% (roughly $61.52 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CDNS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDNS should anchor to the underlying notional of $375.21 per share and to the trader's directional view on CDNS stock.

CDNS iron condor setup

The CDNS 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 CDNS near $375.21, the first option leg uses a $395.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDNS chain at a 31-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 CDNS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$395.00	$16.50
Buy 1	Call	$415.00	$10.20
Sell 1	Put	$355.00	$14.70
Buy 1	Put	$340.00	$10.60

CDNS iron condor risk and reward

Net Premium / Debit: +$1,040.00
Max Profit (per contract): $1,040.00
Max Loss (per contract): -$960.00
Breakeven(s): $344.60, $405.40
Risk / Reward Ratio: 1.083

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.

CDNS iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on CDNS. 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%	-$460.00
$82.97	-77.9%	-$460.00
$165.93	-55.8%	-$460.00
$248.89	-33.7%	-$460.00
$331.85	-11.6%	-$460.00
$414.81	+10.6%	-$940.95
$497.77	+32.7%	-$960.00
$580.73	+54.8%	-$960.00
$663.69	+76.9%	-$960.00
$746.65	+99.0%	-$960.00

When traders use iron condor on CDNS

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

CDNS thesis for this iron condor

The market-implied 1-standard-deviation range for CDNS extends from approximately $313.69 on the downside to $436.73 on the upside. A CDNS iron condor is a delta-neutral premium-collection structure that pays off when CDNS 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 CDNS 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 CDNS at 57.19%. As a Technology name, CDNS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDNS-specific events.

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

Frequently asked questions

What is a iron condor on CDNS?: A iron condor on CDNS is the iron condor strategy applied to CDNS (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 CDNS stock trading near $375.21, the strikes shown on this page are snapped to the nearest listed CDNS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CDNS 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 CDNS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 57.19%), the computed maximum profit is $1,040.00 per contract and the computed maximum loss is -$960.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CDNS iron condor?: The breakeven for the CDNS iron condor priced on this page is roughly $344.60 and $405.40 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 CDNS market-implied 1-standard-deviation expected move is approximately 16.40%; 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 CDNS?: Iron condors on CDNS are a delta-neutral premium-collection structure that profits if CDNS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current CDNS implied volatility affect this iron condor?: CDNS ATM IV is at 57.19% 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.