ESTA Iron Condor Strategy
ESTA (Establishment Labs Holdings Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under Motiva Implants brand name. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander, as well as distributes Puregraft line of products for autologous adipose tissue harvesting and redistribution. The company sells its products through exclusive distributors and direct sales force in Europe, Latin America, the Asia-Pacific, and internationally. Establishment Labs Holdings Inc. was incorporated in 2004 and is headquartered in Alajuela, Costa Rica.
ESTA (Establishment Labs Holdings Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $2.03B, a beta of 1.12 versus the broader market, a 52-week range of 33.35-83.31, average daily share volume of 536K, a public-listing history dating back to 2018, approximately 1K full-time employees. These structural characteristics shape how ESTA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places ESTA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on ESTA?
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 ESTA snapshot
As of May 15, 2026, spot at $65.96, ATM IV 57.70%, IV rank 17.64%, expected move 16.54%. The iron condor on ESTA 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 ESTA specifically: ESTA IV at 57.70% is on the cheap side of its 1-year range, which means a premium-selling ESTA iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.54% (roughly $10.91 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 ESTA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ESTA should anchor to the underlying notional of $65.96 per share and to the trader's directional view on ESTA stock.
ESTA iron condor setup
The ESTA 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 ESTA near $65.96, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ESTA 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 ESTA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $70.00 | $3.43 |
| Buy 1 | Call | $72.50 | $2.90 |
| Sell 1 | Put | $62.50 | $2.58 |
| Buy 1 | Put | $60.00 | $2.00 |
ESTA iron condor risk and reward
- Net Premium / Debit
- +$110.00
- Max Profit (per contract)
- $110.00
- Max Loss (per contract)
- -$140.00
- Breakeven(s)
- $61.40, $71.10
- Risk / Reward Ratio
- 0.786
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.
ESTA iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ESTA. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$140.00 |
| $14.59 | -77.9% | -$140.00 |
| $29.18 | -55.8% | -$140.00 |
| $43.76 | -33.7% | -$140.00 |
| $58.34 | -11.5% | -$140.00 |
| $72.93 | +10.6% | -$140.00 |
| $87.51 | +32.7% | -$140.00 |
| $102.09 | +54.8% | -$140.00 |
| $116.67 | +76.9% | -$140.00 |
| $131.26 | +99.0% | -$140.00 |
When traders use iron condor on ESTA
Iron condors on ESTA are a delta-neutral premium-collection structure that profits if ESTA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ESTA thesis for this iron condor
The market-implied 1-standard-deviation range for ESTA extends from approximately $55.05 on the downside to $76.87 on the upside. A ESTA iron condor is a delta-neutral premium-collection structure that pays off when ESTA 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 ESTA IV rank near 17.64% 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 ESTA at 57.70%. As a Healthcare name, ESTA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ESTA-specific events.
ESTA 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. ESTA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ESTA alongside the broader basket even when ESTA-specific fundamentals are unchanged. Short-premium structures like a iron condor on ESTA carry tail risk when realized volatility exceeds the implied move; review historical ESTA earnings reactions and macro stress periods before sizing. Always rebuild the position from current ESTA chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ESTA?
- A iron condor on ESTA is the iron condor strategy applied to ESTA (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 ESTA stock trading near $65.96, the strikes shown on this page are snapped to the nearest listed ESTA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ESTA 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 ESTA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 57.70%), the computed maximum profit is $110.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ESTA iron condor?
- The breakeven for the ESTA iron condor priced on this page is roughly $61.40 and $71.10 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 ESTA market-implied 1-standard-deviation expected move is approximately 16.54%; 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 ESTA?
- Iron condors on ESTA are a delta-neutral premium-collection structure that profits if ESTA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ESTA implied volatility affect this iron condor?
- ESTA ATM IV is at 57.70% with IV rank near 17.64%, 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.