JACK Iron Condor Strategy
JACK (Jack in the Box Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of November 23, 2021, it operated and franchised approximately 2,200 Jack in the Box quick-service restaurants in 21 states and Guam. The company was founded in 1951 and is headquartered in San Diego, California.
JACK (Jack in the Box Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $244.3M, a trailing P/E of 4.48, a beta of 1.48 versus the broader market, a 52-week range of 8.92-25.34, average daily share volume of 848K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how JACK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.48 indicates JACK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 4.48 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. JACK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on JACK?
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 JACK snapshot
As of May 15, 2026, spot at $10.81, ATM IV 76.20%, IV rank 14.74%, expected move 21.85%. The iron condor on JACK 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 JACK specifically: JACK IV at 76.20% is on the cheap side of its 1-year range, which means a premium-selling JACK iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.85% (roughly $2.36 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 JACK expiries trade a higher absolute premium for lower per-day decay. Position sizing on JACK should anchor to the underlying notional of $10.81 per share and to the trader's directional view on JACK stock.
JACK iron condor setup
The JACK 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 JACK near $10.81, the first option leg uses a $11.35 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JACK 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 JACK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $11.35 | N/A |
| Buy 1 | Call | $11.89 | N/A |
| Sell 1 | Put | $10.27 | N/A |
| Buy 1 | Put | $9.73 | N/A |
JACK 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.
JACK iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on JACK. 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 JACK
Iron condors on JACK are a delta-neutral premium-collection structure that profits if JACK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
JACK thesis for this iron condor
The market-implied 1-standard-deviation range for JACK extends from approximately $8.45 on the downside to $13.17 on the upside. A JACK iron condor is a delta-neutral premium-collection structure that pays off when JACK 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 JACK IV rank near 14.74% 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 JACK at 76.20%. As a Consumer Cyclical name, JACK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JACK-specific events.
JACK 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. JACK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JACK alongside the broader basket even when JACK-specific fundamentals are unchanged. Short-premium structures like a iron condor on JACK carry tail risk when realized volatility exceeds the implied move; review historical JACK earnings reactions and macro stress periods before sizing. Always rebuild the position from current JACK chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on JACK?
- A iron condor on JACK is the iron condor strategy applied to JACK (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 JACK stock trading near $10.81, the strikes shown on this page are snapped to the nearest listed JACK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are JACK 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 JACK iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 76.20%), 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 JACK iron condor?
- The breakeven for the JACK 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 JACK market-implied 1-standard-deviation expected move is approximately 21.85%; 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 JACK?
- Iron condors on JACK are a delta-neutral premium-collection structure that profits if JACK stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current JACK implied volatility affect this iron condor?
- JACK ATM IV is at 76.20% with IV rank near 14.74%, 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.