LDOS Iron Condor Strategy
LDOS (Leidos Holdings, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.
Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. It operates through three segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S. Intelligence Community, the Department of Defense, the National Aeronautics and Space Administration, military services, and government agencies of U.S. allies abroad, as well as other federal and commercial customers in the national security industry. Its solutions include technology, large-scale systems, command and control platforms, data analytics, logistics, and cybersecurity solutions, as well as intelligence analysis and operations support services to critical missions. The Civil segment provides systems integration services to air navigation service providers, including the federal aviation administration, the En route automation modernization, advanced technology oceanic procedure, time based flow management, terminal flight data management, geo-7, and future flight services, as well as enterprise-information display systems; and security detection and automation services.
LDOS (Leidos Holdings, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $15.62B, a trailing P/E of 11.01, a beta of 0.57 versus the broader market, a 52-week range of 121.53-205.77, average daily share volume of 1.2M, a public-listing history dating back to 2006, approximately 47K full-time employees. These structural characteristics shape how LDOS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates LDOS 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 11.01 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LDOS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on LDOS?
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 LDOS snapshot
As of May 15, 2026, spot at $123.05, ATM IV 32.00%, IV rank 41.77%, expected move 9.17%. The iron condor on LDOS 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 LDOS specifically: LDOS IV at 32.00% is mid-range versus its 1-year history, so the credit collected on a LDOS iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.17% (roughly $11.29 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 LDOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on LDOS should anchor to the underlying notional of $123.05 per share and to the trader's directional view on LDOS stock.
LDOS iron condor setup
The LDOS 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 LDOS near $123.05, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LDOS 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 LDOS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $130.00 | $2.30 |
| Buy 1 | Call | $135.00 | $1.23 |
| Sell 1 | Put | $115.00 | $1.88 |
| Buy 1 | Put | $110.00 | $1.03 |
LDOS iron condor risk and reward
- Net Premium / Debit
- +$192.50
- Max Profit (per contract)
- $192.50
- Max Loss (per contract)
- -$307.50
- Breakeven(s)
- $113.08, $131.93
- Risk / Reward Ratio
- 0.626
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.
LDOS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on LDOS. 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% | -$307.50 |
| $27.22 | -77.9% | -$307.50 |
| $54.42 | -55.8% | -$307.50 |
| $81.63 | -33.7% | -$307.50 |
| $108.83 | -11.6% | -$307.50 |
| $136.04 | +10.6% | -$307.50 |
| $163.25 | +32.7% | -$307.50 |
| $190.45 | +54.8% | -$307.50 |
| $217.66 | +76.9% | -$307.50 |
| $244.86 | +99.0% | -$307.50 |
When traders use iron condor on LDOS
Iron condors on LDOS are a delta-neutral premium-collection structure that profits if LDOS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
LDOS thesis for this iron condor
The market-implied 1-standard-deviation range for LDOS extends from approximately $111.76 on the downside to $134.34 on the upside. A LDOS iron condor is a delta-neutral premium-collection structure that pays off when LDOS 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 LDOS IV rank near 41.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on LDOS should anchor more to the directional view and the expected-move geometry. As a Technology name, LDOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LDOS-specific events.
LDOS 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. LDOS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LDOS alongside the broader basket even when LDOS-specific fundamentals are unchanged. Short-premium structures like a iron condor on LDOS carry tail risk when realized volatility exceeds the implied move; review historical LDOS earnings reactions and macro stress periods before sizing. Always rebuild the position from current LDOS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on LDOS?
- A iron condor on LDOS is the iron condor strategy applied to LDOS (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 LDOS stock trading near $123.05, the strikes shown on this page are snapped to the nearest listed LDOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LDOS 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 LDOS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), the computed maximum profit is $192.50 per contract and the computed maximum loss is -$307.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LDOS iron condor?
- The breakeven for the LDOS iron condor priced on this page is roughly $113.08 and $131.93 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 LDOS market-implied 1-standard-deviation expected move is approximately 9.17%; 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 LDOS?
- Iron condors on LDOS are a delta-neutral premium-collection structure that profits if LDOS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current LDOS implied volatility affect this iron condor?
- LDOS ATM IV is at 32.00% with IV rank near 41.77%, 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.