CPRI Iron Condor Strategy
CPRI (Capri Holdings Limited), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, eyewear, watches, jewelry, fragrances, home furnishings, handbags, small leather goods, scarves and belts, and shoes and related accessories through a distribution network, including boutiques, and department and specialty stores, as well as through e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.
CPRI (Capri Holdings Limited) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $1.79B, a trailing P/E of 11.73, a beta of 1.40 versus the broader market, a 52-week range of 14.78-28.27, average daily share volume of 3.2M, a public-listing history dating back to 2011, approximately 15K full-time employees. These structural characteristics shape how CPRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates CPRI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.73 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a iron condor on CPRI?
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.
CPRI snapshot
As of August 14, 2026, spot at $15.46, ATM IV 46.50%, IV rank 7.13%, expected move 13.33%. The iron condor on CPRI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 126-day expiry.
Why this iron condor structure on CPRI specifically: CPRI IV at 46.50% is on the cheap side of its 1-year range, which means a premium-selling CPRI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $2.06 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRI should anchor to the underlying notional of $15.46 per share and to the trader's directional view on CPRI stock.
CPRI iron condor setup
The CPRI iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CPRI at $15.46 on that close, the first option leg uses a $16.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRI chain at a 126-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 CPRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $16.23 | N/A |
| Buy 1 | Call | $17.01 | N/A |
| Sell 1 | Put | $14.69 | N/A |
| Buy 1 | Put | $13.91 | N/A |
CPRI 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.
CPRI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CPRI. 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 CPRI
Iron condors on CPRI are a delta-neutral premium-collection structure that profits if CPRI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CPRI thesis for this iron condor
The market-implied 1-standard-deviation range for CPRI extends from approximately $13.40 on the downside to $17.52 on the upside. A CPRI iron condor is a delta-neutral premium-collection structure that pays off when CPRI 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 CPRI IV rank near 7.13% 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 CPRI at 46.50%. As a Consumer Cyclical name, CPRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRI-specific events.
CPRI 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. CPRI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPRI alongside the broader basket even when CPRI-specific fundamentals are unchanged. Short-premium structures like a iron condor on CPRI carry tail risk when realized volatility exceeds the implied move; review historical CPRI earnings reactions and macro stress periods before sizing. Always rebuild the position from current CPRI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CPRI?
- A iron condor on CPRI is the iron condor strategy applied to CPRI (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 CPRI stock at $15.46 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CPRI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CPRI 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 CPRI iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.50%), 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 CPRI iron condor?
- The breakeven for the CPRI iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the August 14, 2026 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 CPRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.33%; 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 CPRI?
- Iron condors on CPRI are a delta-neutral premium-collection structure that profits if CPRI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CPRI implied volatility affect this iron condor?
- CPRI ATM IV is at 46.50% with IV rank near 7.13%, 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.