EGAN Iron Condor Strategy
EGAN (eGain Corporation), in the Technology sector, (Software - Application industry), listed on NASDAQ.
eGain Corporation develops, licenses, implements, and supports customer service infrastructure software solutions in North America, Europe, the Middle East, Africa, and the Asia Pacific. It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement. It also offers subscription services that provides customers with access to its software on a cloud-based platform; and professional services, such as consulting, implementation, and training services. It serves customers in various industry sectors, including the financial services, telecommunications, retail, government, healthcare, and utilities. The company was incorporated in 1997 and is headquartered in Sunnyvale, California.
EGAN (eGain Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $177.5M, a trailing P/E of 4.88, a beta of 0.83 versus the broader market, a 52-week range of 4.87-15.95, average daily share volume of 224K, a public-listing history dating back to 1999, approximately 539 full-time employees. These structural characteristics shape how EGAN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places EGAN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 4.88 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 EGAN?
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 EGAN snapshot
As of May 15, 2026, spot at $6.45, ATM IV 84.20%, IV rank 14.48%, expected move 24.14%. The iron condor on EGAN 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 EGAN specifically: EGAN IV at 84.20% is on the cheap side of its 1-year range, which means a premium-selling EGAN iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.14% (roughly $1.56 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 EGAN expiries trade a higher absolute premium for lower per-day decay. Position sizing on EGAN should anchor to the underlying notional of $6.45 per share and to the trader's directional view on EGAN stock.
EGAN iron condor setup
The EGAN 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 EGAN near $6.45, the first option leg uses a $6.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EGAN 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 EGAN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $6.77 | N/A |
| Buy 1 | Call | $7.10 | N/A |
| Sell 1 | Put | $6.13 | N/A |
| Buy 1 | Put | $5.81 | N/A |
EGAN 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.
EGAN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on EGAN. 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 EGAN
Iron condors on EGAN are a delta-neutral premium-collection structure that profits if EGAN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
EGAN thesis for this iron condor
The market-implied 1-standard-deviation range for EGAN extends from approximately $4.89 on the downside to $8.01 on the upside. A EGAN iron condor is a delta-neutral premium-collection structure that pays off when EGAN 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 EGAN IV rank near 14.48% 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 EGAN at 84.20%. As a Technology name, EGAN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EGAN-specific events.
EGAN 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. EGAN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EGAN alongside the broader basket even when EGAN-specific fundamentals are unchanged. Short-premium structures like a iron condor on EGAN carry tail risk when realized volatility exceeds the implied move; review historical EGAN earnings reactions and macro stress periods before sizing. Always rebuild the position from current EGAN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on EGAN?
- A iron condor on EGAN is the iron condor strategy applied to EGAN (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 EGAN stock trading near $6.45, the strikes shown on this page are snapped to the nearest listed EGAN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EGAN 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 EGAN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 84.20%), 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 EGAN iron condor?
- The breakeven for the EGAN 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 EGAN market-implied 1-standard-deviation expected move is approximately 24.14%; 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 EGAN?
- Iron condors on EGAN are a delta-neutral premium-collection structure that profits if EGAN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current EGAN implied volatility affect this iron condor?
- EGAN ATM IV is at 84.20% with IV rank near 14.48%, 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.