DEI Iron Condor Strategy
DEI (Douglas Emmett, Inc.), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed real estate investment trust , and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
DEI (Douglas Emmett, Inc.) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $1.95B, a beta of 1.18 versus the broader market, a 52-week range of 9.04-16.99, average daily share volume of 2.4M, a public-listing history dating back to 2006, approximately 778 full-time employees. These structural characteristics shape how DEI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places DEI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DEI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on DEI?
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.
DEI snapshot
As of August 14, 2026, spot at $11.70, ATM IV 65.80%, IV rank 13.54%, expected move 18.86%. The iron condor on DEI 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 DEI specifically: DEI IV at 65.80% is on the cheap side of its 1-year range, which means a premium-selling DEI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.86% (roughly $2.21 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 DEI expiries trade a higher absolute premium for lower per-day decay. Position sizing on DEI should anchor to the underlying notional of $11.70 per share and to the trader's directional view on DEI stock.
DEI iron condor setup
The DEI 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 DEI at $11.70 on that close, the first option leg uses a $12.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DEI 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 DEI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $12.29 | N/A |
| Buy 1 | Call | $12.87 | N/A |
| Sell 1 | Put | $11.11 | N/A |
| Buy 1 | Put | $10.53 | N/A |
DEI 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.
DEI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on DEI. 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 DEI
Iron condors on DEI are a delta-neutral premium-collection structure that profits if DEI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
DEI thesis for this iron condor
The market-implied 1-standard-deviation range for DEI extends from approximately $9.49 on the downside to $13.91 on the upside. A DEI iron condor is a delta-neutral premium-collection structure that pays off when DEI 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 DEI IV rank near 13.54% 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 DEI at 65.80%. As a Real Estate name, DEI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DEI-specific events.
DEI 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. DEI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DEI alongside the broader basket even when DEI-specific fundamentals are unchanged. Short-premium structures like a iron condor on DEI carry tail risk when realized volatility exceeds the implied move; review historical DEI earnings reactions and macro stress periods before sizing. Always rebuild the position from current DEI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on DEI?
- A iron condor on DEI is the iron condor strategy applied to DEI (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 DEI stock at $11.70 on the most recent close, the strikes shown on this page are snapped to the nearest listed DEI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DEI 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 DEI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 65.80%), 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 DEI iron condor?
- The breakeven for the DEI 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 DEI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.86%; 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 DEI?
- Iron condors on DEI are a delta-neutral premium-collection structure that profits if DEI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current DEI implied volatility affect this iron condor?
- DEI ATM IV is at 65.80% with IV rank near 13.54%, 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.