CGNT Iron Condor Strategy
CGNT (Cognyte Software Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company also offers network intelligence analytics, open source and threat intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies; and enterprise customers consist of commercial and physical security customers.
CGNT (Cognyte Software Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $708.9M, a beta of 1.58 versus the broader market, a 52-week range of 6.29-11.655, average daily share volume of 548K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how CGNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.58 indicates CGNT 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 CGNT?
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 CGNT snapshot
As of May 15, 2026, spot at $9.68, ATM IV 62.60%, IV rank 10.67%, expected move 17.95%. The iron condor on CGNT 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 CGNT specifically: CGNT IV at 62.60% is on the cheap side of its 1-year range, which means a premium-selling CGNT iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.95% (roughly $1.74 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 CGNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGNT should anchor to the underlying notional of $9.68 per share and to the trader's directional view on CGNT stock.
CGNT iron condor setup
The CGNT 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 CGNT near $9.68, the first option leg uses a $10.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGNT 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 CGNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $10.16 | N/A |
| Buy 1 | Call | $10.65 | N/A |
| Sell 1 | Put | $9.20 | N/A |
| Buy 1 | Put | $8.71 | N/A |
CGNT 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.
CGNT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CGNT. 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 CGNT
Iron condors on CGNT are a delta-neutral premium-collection structure that profits if CGNT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CGNT thesis for this iron condor
The market-implied 1-standard-deviation range for CGNT extends from approximately $7.94 on the downside to $11.42 on the upside. A CGNT iron condor is a delta-neutral premium-collection structure that pays off when CGNT 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 CGNT IV rank near 10.67% 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 CGNT at 62.60%. As a Technology name, CGNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGNT-specific events.
CGNT 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. CGNT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGNT alongside the broader basket even when CGNT-specific fundamentals are unchanged. Short-premium structures like a iron condor on CGNT carry tail risk when realized volatility exceeds the implied move; review historical CGNT earnings reactions and macro stress periods before sizing. Always rebuild the position from current CGNT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CGNT?
- A iron condor on CGNT is the iron condor strategy applied to CGNT (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 CGNT stock trading near $9.68, the strikes shown on this page are snapped to the nearest listed CGNT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGNT 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 CGNT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 62.60%), 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 CGNT iron condor?
- The breakeven for the CGNT 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 CGNT market-implied 1-standard-deviation expected move is approximately 17.95%; 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 CGNT?
- Iron condors on CGNT are a delta-neutral premium-collection structure that profits if CGNT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CGNT implied volatility affect this iron condor?
- CGNT ATM IV is at 62.60% with IV rank near 10.67%, 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.