LRMR Iron Condor Strategy
LRMR (Larimar Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Headquartered in Bala Cynwyd, Pennsylvania, Larimar Therapeutics, Inc. operates as a clinical-stage biotechnology firm. Its core mission involves crafting therapies for rare diseases, leveraging a distinctive cell-penetrating peptide technology platform. The company's foremost experimental therapy, CTI-1601, is presently undergoing Phase 1 clinical trials. This drug candidate is being developed to combat Friedreich's ataxia, a genetic illness that is rare, relentlessly progressive, and ultimately fatal.
LRMR (Larimar Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $454.0M, a beta of 0.75 versus the broader market, a 52-week range of 2.715-6.42, average daily share volume of 1.9M, a public-listing history dating back to 2014, approximately 71 full-time employees. These structural characteristics shape how LRMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places LRMR 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 LRMR?
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.
LRMR snapshot
As of August 14, 2026, spot at $4.33, ATM IV 83.70%, IV rank 13.45%, expected move 24.00%. The iron condor on LRMR below is built from the 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 LRMR specifically: LRMR IV at 83.70% is on the cheap side of its 1-year range, which means a premium-selling LRMR iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.00% (roughly $1.04 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 LRMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRMR should anchor to the underlying notional of $4.33 per share and to the trader's directional view on LRMR stock.
LRMR iron condor setup
The LRMR 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 LRMR at $4.33 on that close, the first option leg uses a $4.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRMR 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 LRMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $4.55 | N/A |
| Buy 1 | Call | $4.76 | N/A |
| Sell 1 | Put | $4.11 | N/A |
| Buy 1 | Put | $3.90 | N/A |
LRMR 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.
LRMR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on LRMR. 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 LRMR
Iron condors on LRMR are a delta-neutral premium-collection structure that profits if LRMR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
LRMR thesis for this iron condor
The market-implied 1-standard-deviation range for LRMR extends from approximately $3.29 on the downside to $5.37 on the upside. A LRMR iron condor is a delta-neutral premium-collection structure that pays off when LRMR 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 LRMR IV rank near 13.45% 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 LRMR at 83.70%. As a Healthcare name, LRMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRMR-specific events.
LRMR 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. LRMR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LRMR alongside the broader basket even when LRMR-specific fundamentals are unchanged. Short-premium structures like a iron condor on LRMR carry tail risk when realized volatility exceeds the implied move; review historical LRMR earnings reactions and macro stress periods before sizing. Always rebuild the position from current LRMR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on LRMR?
- A iron condor on LRMR is the iron condor strategy applied to LRMR (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 LRMR stock at $4.33 on the most recent close, the strikes shown on this page are snapped to the nearest listed LRMR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LRMR 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 LRMR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 83.70%), 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 LRMR iron condor?
- The breakeven for the LRMR iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LRMR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.00%; 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 LRMR?
- Iron condors on LRMR are a delta-neutral premium-collection structure that profits if LRMR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current LRMR implied volatility affect this iron condor?
- LRMR ATM IV is at 83.70% with IV rank near 13.45%, 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.