FIVE Iron Condor Strategy
FIVE (Five Below, Inc.), in the Consumer Defensive sector, (Discount Stores industry), listed on NASDAQ.
Five Below, Inc. operates as a prominent specialty discount retailer primarily serving the United States market. The company's diverse inventory spans a wide array of personal accessories, from fashionable novelty socks, sunglasses, and jewelry to scarves, gloves, hair accessories, and athletic apparel like tops, bottoms, and t-shirts. Shoppers can also find a comprehensive selection of beauty products, including nail polish, lip gloss, fragrances, and various branded cosmetics. For home and personal spaces, Five Below provides an assortment of items such as lamps, posters, picture frames, cozy fleece blankets, plush toys, pillows, candles, incense, and diverse lighting and novelty décor. This section also includes accent furniture and practical storage solutions. Athletic and recreational interests are covered with sports balls, team merchandise, and fitness essentials like hand weights, jump ropes, and gym balls.
FIVE (Five Below, Inc.) trades in the Consumer Defensive sector, specifically Discount Stores, with a market capitalization of approximately $10.42B, a trailing P/E of 23.63, a beta of 0.97 versus the broader market, a 52-week range of 126.1-251.63, average daily share volume of 1.3M, a public-listing history dating back to 2012, approximately 7K full-time employees. These structural characteristics shape how FIVE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places FIVE 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 FIVE?
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 FIVE snapshot
As of June 30, 2026, spot at $179.45, ATM IV 38.60%, IV rank 9.76%, expected move 11.07%. The iron condor on FIVE 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 17-day expiry.
Why this iron condor structure on FIVE specifically: FIVE IV at 38.60% is on the cheap side of its 1-year range, which means a premium-selling FIVE iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.07% (roughly $19.86 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIVE expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIVE should anchor to the underlying notional of $179.45 per share and to the trader's directional view on FIVE stock.
FIVE iron condor setup
The FIVE 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 FIVE near $179.45, the first option leg uses a $190.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIVE chain at a 17-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 FIVE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $190.00 | $2.40 |
| Buy 1 | Call | $195.00 | $1.58 |
| Sell 1 | Put | $170.00 | $2.40 |
| Buy 1 | Put | $160.00 | $1.28 |
FIVE iron condor risk and reward
- Net Premium / Debit
- +$195.00
- Max Profit (per contract)
- $195.00
- Max Loss (per contract)
- -$805.00
- Breakeven(s)
- $168.05, $191.95
- Risk / Reward Ratio
- 0.242
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.
FIVE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FIVE. 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% | -$805.00 |
| $39.69 | -77.9% | -$805.00 |
| $79.36 | -55.8% | -$805.00 |
| $119.04 | -33.7% | -$805.00 |
| $158.72 | -11.6% | -$805.00 |
| $198.39 | +10.6% | -$305.00 |
| $238.07 | +32.7% | -$305.00 |
| $277.74 | +54.8% | -$305.00 |
| $317.42 | +76.9% | -$305.00 |
| $357.10 | +99.0% | -$305.00 |
When traders use iron condor on FIVE
Iron condors on FIVE are a delta-neutral premium-collection structure that profits if FIVE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FIVE thesis for this iron condor
The market-implied 1-standard-deviation range for FIVE extends from approximately $159.59 on the downside to $199.31 on the upside. A FIVE iron condor is a delta-neutral premium-collection structure that pays off when FIVE 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 FIVE IV rank near 9.76% 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 FIVE at 38.60%. As a Consumer Defensive name, FIVE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIVE-specific events.
FIVE 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. FIVE positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIVE alongside the broader basket even when FIVE-specific fundamentals are unchanged. Short-premium structures like a iron condor on FIVE carry tail risk when realized volatility exceeds the implied move; review historical FIVE earnings reactions and macro stress periods before sizing. Always rebuild the position from current FIVE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FIVE?
- A iron condor on FIVE is the iron condor strategy applied to FIVE (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 FIVE stock trading near $179.45, the strikes shown on this page are snapped to the nearest listed FIVE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FIVE 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 FIVE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 38.60%), the computed maximum profit is $195.00 per contract and the computed maximum loss is -$805.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FIVE iron condor?
- The breakeven for the FIVE iron condor priced on this page is roughly $168.05 and $191.95 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 FIVE market-implied 1-standard-deviation expected move is approximately 11.07%; 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 FIVE?
- Iron condors on FIVE are a delta-neutral premium-collection structure that profits if FIVE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FIVE implied volatility affect this iron condor?
- FIVE ATM IV is at 38.60% with IV rank near 9.76%, 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.