FNLC Iron Condor Strategy
FNLC (The First Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
The First Bancorp, Inc. functions as the holding company for First National Bank, providing a comprehensive suite of banking products and financial services to both individual customers and commercial enterprises. Its deposit offerings encompass various account types, such as demand, NOW, savings, money market, and certificates of deposit. The institution also plays a key role in commercial real estate financing, issuing mortgage loans for investments in diverse property types including multi-family dwellings, retail outlets, offices, industrial sites, hotels, and educational facilities. It also funds commercial construction projects, whether for owner-occupied properties or other ventures. Additionally, it extends other commercial credit solutions like revolving lines and term loans, designed to assist businesses and corporations with their working capital needs or capital investments. Furthermore, First Bancorp furnishes loans to municipalities for capital expenditures, construction initiatives, or as tax-anticipation notes.
FNLC (The First Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $400.4M, a trailing P/E of 10.86, a beta of 0.52 versus the broader market, a 52-week range of 24.08-35.74, average daily share volume of 22K, a public-listing history dating back to 1999, approximately 284 full-time employees. These structural characteristics shape how FNLC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.52 indicates FNLC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.86 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FNLC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on FNLC?
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 FNLC snapshot
As of June 30, 2026, spot at $34.59, ATM IV 48.10%, IV rank 13.21%, expected move 13.79%. The iron condor on FNLC 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 FNLC specifically: FNLC IV at 48.10% is on the cheap side of its 1-year range, which means a premium-selling FNLC iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.79% (roughly $4.77 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 FNLC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FNLC should anchor to the underlying notional of $34.59 per share and to the trader's directional view on FNLC stock.
FNLC iron condor setup
The FNLC 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 FNLC near $34.59, the first option leg uses a $36.32 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FNLC 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 FNLC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $36.32 | N/A |
| Buy 1 | Call | $38.05 | N/A |
| Sell 1 | Put | $32.86 | N/A |
| Buy 1 | Put | $31.13 | N/A |
FNLC 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.
FNLC iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FNLC. 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 FNLC
Iron condors on FNLC are a delta-neutral premium-collection structure that profits if FNLC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FNLC thesis for this iron condor
The market-implied 1-standard-deviation range for FNLC extends from approximately $29.82 on the downside to $39.36 on the upside. A FNLC iron condor is a delta-neutral premium-collection structure that pays off when FNLC 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 FNLC IV rank near 13.21% 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 FNLC at 48.10%. As a Financial Services name, FNLC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FNLC-specific events.
FNLC 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. FNLC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FNLC alongside the broader basket even when FNLC-specific fundamentals are unchanged. Short-premium structures like a iron condor on FNLC carry tail risk when realized volatility exceeds the implied move; review historical FNLC earnings reactions and macro stress periods before sizing. Always rebuild the position from current FNLC chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FNLC?
- A iron condor on FNLC is the iron condor strategy applied to FNLC (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 FNLC stock trading near $34.59, the strikes shown on this page are snapped to the nearest listed FNLC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FNLC 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 FNLC iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 48.10%), 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 FNLC iron condor?
- The breakeven for the FNLC 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 FNLC market-implied 1-standard-deviation expected move is approximately 13.79%; 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 FNLC?
- Iron condors on FNLC are a delta-neutral premium-collection structure that profits if FNLC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FNLC implied volatility affect this iron condor?
- FNLC ATM IV is at 48.10% with IV rank near 13.21%, 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.