GWRE Iron Condor Strategy
GWRE (Guidewire Software, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCenter applications. It also provides Guidewire InsuranceNow, a cloud-based platform that offers policy, billing, and claims management functionality to insurers; and Guidewire InsuranceSuite for Self-Managed. In addition, the company offers Guidewire Rating Management to manage the pricing of insurance products; Guidewire Reinsurance Management to use rules-based logic to execute reinsurance strategy through underwriting and claims processes; Guidewire Client Data Management to capitalize on customer information; and Guidewire Product Content Management that offers software tools and standards-based line-of-business templates to introduce and modify products. Further, it provides Guidewire Underwriting Management, a cloud-based integrated business application; Guidewire AppReader, a submission intake management solution; Guidewire ClaimCenter Package for the London market supports the claims workflow used by London Market insurers and brokers; Guidewire Digital Engagement Applications, which enable insurers to provide digital experiences to customers, agents, vendors, and field personnel through their device of choice; and Guidewire for Salesforce to provide customer information regarding policies and claims. Additionally, the company offers Guidewire Predictive Analytics, a set of cloud-native applications; Guidewire Risk Insights that allows insurers to assess new and evolving risks; Guidewire Business Intelligence that allows insurers to measure business performance; Guidewire DataHub, an operational data store; and Guidewire InfoCenter, a business intelligence warehouse, as well as implementation and integration, and professional services.
GWRE (Guidewire Software, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $10.68B, a trailing P/E of 56.26, a beta of 0.91 versus the broader market, a 52-week range of 115.57-272.6, average daily share volume of 1.5M, a public-listing history dating back to 2012, approximately 4K full-time employees. These structural characteristics shape how GWRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places GWRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 56.26 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 GWRE?
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 GWRE snapshot
As of May 15, 2026, spot at $129.74, ATM IV 71.70%, IV rank 66.35%, expected move 20.56%. The iron condor on GWRE 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 GWRE specifically: GWRE IV at 71.70% is mid-range versus its 1-year history, so the credit collected on a GWRE iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 20.56% (roughly $26.67 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 GWRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GWRE should anchor to the underlying notional of $129.74 per share and to the trader's directional view on GWRE stock.
GWRE iron condor setup
The GWRE 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 GWRE near $129.74, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GWRE 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 GWRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $135.00 | $9.20 |
| Buy 1 | Call | $145.00 | $5.75 |
| Sell 1 | Put | $125.00 | $8.80 |
| Buy 1 | Put | $115.00 | $5.75 |
GWRE iron condor risk and reward
- Net Premium / Debit
- +$650.00
- Max Profit (per contract)
- $650.00
- Max Loss (per contract)
- -$350.00
- Breakeven(s)
- $118.50, $141.50
- Risk / Reward Ratio
- 1.857
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.
GWRE iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on GWRE. 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% | -$350.00 |
| $28.70 | -77.9% | -$350.00 |
| $57.38 | -55.8% | -$350.00 |
| $86.07 | -33.7% | -$350.00 |
| $114.75 | -11.6% | -$350.00 |
| $143.44 | +10.6% | -$193.56 |
| $172.12 | +32.7% | -$350.00 |
| $200.81 | +54.8% | -$350.00 |
| $229.49 | +76.9% | -$350.00 |
| $258.18 | +99.0% | -$350.00 |
When traders use iron condor on GWRE
Iron condors on GWRE are a delta-neutral premium-collection structure that profits if GWRE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
GWRE thesis for this iron condor
The market-implied 1-standard-deviation range for GWRE extends from approximately $103.07 on the downside to $156.41 on the upside. A GWRE iron condor is a delta-neutral premium-collection structure that pays off when GWRE 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 GWRE IV rank near 66.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on GWRE should anchor more to the directional view and the expected-move geometry. As a Technology name, GWRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GWRE-specific events.
GWRE 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. GWRE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GWRE alongside the broader basket even when GWRE-specific fundamentals are unchanged. Short-premium structures like a iron condor on GWRE carry tail risk when realized volatility exceeds the implied move; review historical GWRE earnings reactions and macro stress periods before sizing. Always rebuild the position from current GWRE chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on GWRE?
- A iron condor on GWRE is the iron condor strategy applied to GWRE (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 GWRE stock trading near $129.74, the strikes shown on this page are snapped to the nearest listed GWRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GWRE 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 GWRE iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 71.70%), the computed maximum profit is $650.00 per contract and the computed maximum loss is -$350.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GWRE iron condor?
- The breakeven for the GWRE iron condor priced on this page is roughly $118.50 and $141.50 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 GWRE market-implied 1-standard-deviation expected move is approximately 20.56%; 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 GWRE?
- Iron condors on GWRE are a delta-neutral premium-collection structure that profits if GWRE stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current GWRE implied volatility affect this iron condor?
- GWRE ATM IV is at 71.70% with IV rank near 66.35%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.