FWRG Iron Condor Strategy
FWRG (First Watch Restaurant Group, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in 28 states in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is headquartered in Bradenton, Florida.
FWRG (First Watch Restaurant Group, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $664.5M, a trailing P/E of 37.56, a beta of 1.12 versus the broader market, a 52-week range of 10.09-19.53, average daily share volume of 1.8M, a public-listing history dating back to 2021, approximately 15K full-time employees. These structural characteristics shape how FWRG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places FWRG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 37.56 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a iron condor on FWRG?
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 FWRG snapshot
As of May 14, 2026, spot at $10.68, ATM IV 39.30%, IV rank 6.45%, expected move 11.27%. The iron condor on FWRG 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 35-day expiry.
Why this iron condor structure on FWRG specifically: FWRG IV at 39.30% is on the cheap side of its 1-year range, which means a premium-selling FWRG iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.27% (roughly $1.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FWRG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FWRG should anchor to the underlying notional of $10.68 per share and to the trader's directional view on FWRG stock.
FWRG iron condor setup
The FWRG 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 FWRG near $10.68, the first option leg uses a $11.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FWRG chain at a 35-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 FWRG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $11.21 | N/A |
| Buy 1 | Call | $11.75 | N/A |
| Sell 1 | Put | $10.15 | N/A |
| Buy 1 | Put | $9.61 | N/A |
FWRG 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.
FWRG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on FWRG. 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 FWRG
Iron condors on FWRG are a delta-neutral premium-collection structure that profits if FWRG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
FWRG thesis for this iron condor
The market-implied 1-standard-deviation range for FWRG extends from approximately $9.48 on the downside to $11.88 on the upside. A FWRG iron condor is a delta-neutral premium-collection structure that pays off when FWRG 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 FWRG IV rank near 6.45% 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 FWRG at 39.30%. As a Consumer Cyclical name, FWRG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FWRG-specific events.
FWRG 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. FWRG positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FWRG alongside the broader basket even when FWRG-specific fundamentals are unchanged. Short-premium structures like a iron condor on FWRG carry tail risk when realized volatility exceeds the implied move; review historical FWRG earnings reactions and macro stress periods before sizing. Always rebuild the position from current FWRG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on FWRG?
- A iron condor on FWRG is the iron condor strategy applied to FWRG (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 FWRG stock trading near $10.68, the strikes shown on this page are snapped to the nearest listed FWRG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FWRG 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 FWRG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 39.30%), 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 FWRG iron condor?
- The breakeven for the FWRG 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 FWRG market-implied 1-standard-deviation expected move is approximately 11.27%; 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 FWRG?
- Iron condors on FWRG are a delta-neutral premium-collection structure that profits if FWRG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current FWRG implied volatility affect this iron condor?
- FWRG ATM IV is at 39.30% with IV rank near 6.45%, 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.