KPTI Iron Condor Strategy
KPTI (Karyopharm Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Karyopharm Therapeutics Inc., a commercial-stage pharmaceutical company, discovers, develops, and commercializes drugs directed against nuclear export for the treatment of cancer and other diseases. The company discovers, develops, and commercializes novel and Selective Inhibitor of Nuclear Export (SINE) compounds function by binding with and inhibiting the nuclear export protein XPO1. Its lead compound, include XPOVIO in combination with bortezomib and dexamethasone for the treatment of adult patients with multiple myeloma, in combination with dexamethasone for the treatment of adult patients with heavily pretreated multiple myeloma, and for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma. The company has license agreement with Menarini Group to develop and commercialize NEXPOVIO for human oncology indications in Europe, including the United Kingdom; Latin America; and other countries. Its oral SINE compounds also designed to force nuclear accumulation in the levels of multiple tumor suppressor and growth regulatory proteins. The company was incorporated in 2008 and is headquartered in Newton, Massachusetts.
KPTI (Karyopharm Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $75.6M, a beta of 0.81 versus the broader market, a 52-week range of 3.65-10.99, average daily share volume of 936K, a public-listing history dating back to 2013, approximately 279 full-time employees. These structural characteristics shape how KPTI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places KPTI 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 KPTI?
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 KPTI snapshot
As of May 15, 2026, spot at $7.72, ATM IV 111.90%, IV rank 11.69%, expected move 32.08%. The iron condor on KPTI 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 KPTI specifically: KPTI IV at 111.90% is on the cheap side of its 1-year range, which means a premium-selling KPTI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 32.08% (roughly $2.48 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 KPTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on KPTI should anchor to the underlying notional of $7.72 per share and to the trader's directional view on KPTI stock.
KPTI iron condor setup
The KPTI 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 KPTI near $7.72, the first option leg uses a $8.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KPTI 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 KPTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $8.11 | N/A |
| Buy 1 | Call | $8.49 | N/A |
| Sell 1 | Put | $7.33 | N/A |
| Buy 1 | Put | $6.95 | N/A |
KPTI 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.
KPTI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on KPTI. 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 KPTI
Iron condors on KPTI are a delta-neutral premium-collection structure that profits if KPTI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
KPTI thesis for this iron condor
The market-implied 1-standard-deviation range for KPTI extends from approximately $5.24 on the downside to $10.20 on the upside. A KPTI iron condor is a delta-neutral premium-collection structure that pays off when KPTI 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 KPTI IV rank near 11.69% 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 KPTI at 111.90%. As a Healthcare name, KPTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KPTI-specific events.
KPTI 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. KPTI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KPTI alongside the broader basket even when KPTI-specific fundamentals are unchanged. Short-premium structures like a iron condor on KPTI carry tail risk when realized volatility exceeds the implied move; review historical KPTI earnings reactions and macro stress periods before sizing. Always rebuild the position from current KPTI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on KPTI?
- A iron condor on KPTI is the iron condor strategy applied to KPTI (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 KPTI stock trading near $7.72, the strikes shown on this page are snapped to the nearest listed KPTI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KPTI 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 KPTI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 111.90%), 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 KPTI iron condor?
- The breakeven for the KPTI 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 KPTI market-implied 1-standard-deviation expected move is approximately 32.08%; 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 KPTI?
- Iron condors on KPTI are a delta-neutral premium-collection structure that profits if KPTI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current KPTI implied volatility affect this iron condor?
- KPTI ATM IV is at 111.90% with IV rank near 11.69%, 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.