EWTX Iron Condor Strategy
EWTX (Edgewise Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Edgewise Therapeutics, Inc., a biopharmaceutical company, develops small molecule therapies for musculoskeletal diseases. The Company's lead product candidate, EDG-5506, is an orally administered small molecule designed to address the root cause of dystrophinopathies including Duchenne muscular dystrophy and Becker muscular dystrophy which has completed Phase 1 clinical trial. It develops a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address genetically defined muscle disorders. Edgewise Therapeutics, Inc. was incorporated in 2017 and is headquartered in Boulder, Colorado.
EWTX (Edgewise Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.63B, a beta of 0.25 versus the broader market, a 52-week range of 12.15-39.96, average daily share volume of 1.0M, a public-listing history dating back to 2021, approximately 117 full-time employees. These structural characteristics shape how EWTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.25 indicates EWTX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a iron condor on EWTX?
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 EWTX snapshot
As of May 15, 2026, spot at $33.08, ATM IV 86.30%, IV rank 17.50%, expected move 24.74%. The iron condor on EWTX 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 EWTX specifically: EWTX IV at 86.30% is on the cheap side of its 1-year range, which means a premium-selling EWTX iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.74% (roughly $8.18 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 EWTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EWTX should anchor to the underlying notional of $33.08 per share and to the trader's directional view on EWTX stock.
EWTX iron condor setup
The EWTX 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 EWTX near $33.08, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EWTX 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 EWTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $35.00 | $3.70 |
| Buy 1 | Call | $36.00 | $2.10 |
| Sell 1 | Put | $31.00 | $2.75 |
| Buy 1 | Put | $30.00 | $2.25 |
EWTX iron condor risk and reward
- Net Premium / Debit
- +$210.00
- Max Profit (per contract)
- $210.00
- Max Loss (per contract)
- $110.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 1.909
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.
EWTX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on EWTX. 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% | +$110.00 |
| $7.32 | -77.9% | +$110.00 |
| $14.64 | -55.8% | +$110.00 |
| $21.95 | -33.6% | +$110.00 |
| $29.26 | -11.5% | +$110.00 |
| $36.58 | +10.6% | +$110.00 |
| $43.89 | +32.7% | +$110.00 |
| $51.20 | +54.8% | +$110.00 |
| $58.51 | +76.9% | +$110.00 |
| $65.83 | +99.0% | +$110.00 |
When traders use iron condor on EWTX
Iron condors on EWTX are a delta-neutral premium-collection structure that profits if EWTX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
EWTX thesis for this iron condor
The market-implied 1-standard-deviation range for EWTX extends from approximately $24.90 on the downside to $41.26 on the upside. A EWTX iron condor is a delta-neutral premium-collection structure that pays off when EWTX 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 EWTX IV rank near 17.50% 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 EWTX at 86.30%. As a Healthcare name, EWTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EWTX-specific events.
EWTX 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. EWTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EWTX alongside the broader basket even when EWTX-specific fundamentals are unchanged. Short-premium structures like a iron condor on EWTX carry tail risk when realized volatility exceeds the implied move; review historical EWTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current EWTX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on EWTX?
- A iron condor on EWTX is the iron condor strategy applied to EWTX (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 EWTX stock trading near $33.08, the strikes shown on this page are snapped to the nearest listed EWTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EWTX 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 EWTX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 86.30%), the computed maximum profit is $210.00 per contract and the computed maximum loss is $110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EWTX iron condor?
- The breakeven for the EWTX 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 EWTX market-implied 1-standard-deviation expected move is approximately 24.74%; 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 EWTX?
- Iron condors on EWTX are a delta-neutral premium-collection structure that profits if EWTX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current EWTX implied volatility affect this iron condor?
- EWTX ATM IV is at 86.30% with IV rank near 17.50%, 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.