NBIX Iron Condor Strategy
NBIX (Neurocrine Biosciences, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Neurocrine Biosciences, Inc. discovers, develops, and markets pharmaceuticals for neurological, endocrine, and psychiatric disorders. The company's portfolio includes treatments for tardive dyskinesia, Parkinson's disease, endometriosis, and uterine fibroids, as well as clinical programs in various therapeutic areas. Its lead asset is INGREZZA, a VMAT2 inhibitor for the treatment of tardive dyskinesia. The company's commercial products include ONGENTYS, a catechol-O-methyltransferase inhibitor used as an adjunct therapy to levodopa/DOPA decarboxylase inhibitors for patients with Parkinson's disease; ORILISSA for the management of moderate to severe endometriosis pain in women; and ORIAHNN, a non-surgical oral medication option for the management of heavy menstrual bleeding associated with uterine fibroids in pre-menopausal women. Its product candidates in clinical development include NBI-921352 for treating pediatric patients, as well as adult focal epilepsy indications; and NBI-827104 to treat rare pediatric epilepsy and essential tremor. The company's products in clinical development also comprise NBI-1065845 for the treatment of major depressive disorder; NBI-1065846 for treating anhedonia in major depressive disorder; and NBI-118568 for the treatment of schizophrenia.
NBIX (Neurocrine Biosciences, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $16.22B, a trailing P/E of 24.25, a beta of 0.34 versus the broader market, a 52-week range of 117.4-161.77, average daily share volume of 1.1M, a public-listing history dating back to 1996, approximately 2K full-time employees. These structural characteristics shape how NBIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.34 indicates NBIX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a iron condor on NBIX?
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 NBIX snapshot
As of May 15, 2026, spot at $158.69, ATM IV 35.30%, IV rank 29.25%, expected move 10.12%. The iron condor on NBIX 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 NBIX specifically: NBIX IV at 35.30% is on the cheap side of its 1-year range, which means a premium-selling NBIX iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.12% (roughly $16.06 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 NBIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NBIX should anchor to the underlying notional of $158.69 per share and to the trader's directional view on NBIX stock.
NBIX iron condor setup
The NBIX 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 NBIX near $158.69, the first option leg uses a $165.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NBIX 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 NBIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $165.00 | $3.60 |
| Buy 1 | Call | $175.00 | $1.80 |
| Sell 1 | Put | $150.00 | $3.58 |
| Buy 1 | Put | $145.00 | $2.18 |
NBIX iron condor risk and reward
- Net Premium / Debit
- +$320.00
- Max Profit (per contract)
- $320.00
- Max Loss (per contract)
- -$680.00
- Breakeven(s)
- $146.80, $168.20
- Risk / Reward Ratio
- 0.471
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.
NBIX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NBIX. 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% | -$180.00 |
| $35.10 | -77.9% | -$180.00 |
| $70.18 | -55.8% | -$180.00 |
| $105.27 | -33.7% | -$180.00 |
| $140.35 | -11.6% | -$180.00 |
| $175.44 | +10.6% | -$680.00 |
| $210.53 | +32.7% | -$680.00 |
| $245.61 | +54.8% | -$680.00 |
| $280.70 | +76.9% | -$680.00 |
| $315.79 | +99.0% | -$680.00 |
When traders use iron condor on NBIX
Iron condors on NBIX are a delta-neutral premium-collection structure that profits if NBIX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NBIX thesis for this iron condor
The market-implied 1-standard-deviation range for NBIX extends from approximately $142.63 on the downside to $174.75 on the upside. A NBIX iron condor is a delta-neutral premium-collection structure that pays off when NBIX 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 NBIX IV rank near 29.25% 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 NBIX at 35.30%. As a Healthcare name, NBIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NBIX-specific events.
NBIX 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. NBIX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NBIX alongside the broader basket even when NBIX-specific fundamentals are unchanged. Short-premium structures like a iron condor on NBIX carry tail risk when realized volatility exceeds the implied move; review historical NBIX earnings reactions and macro stress periods before sizing. Always rebuild the position from current NBIX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NBIX?
- A iron condor on NBIX is the iron condor strategy applied to NBIX (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 NBIX stock trading near $158.69, the strikes shown on this page are snapped to the nearest listed NBIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NBIX 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 NBIX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 35.30%), the computed maximum profit is $320.00 per contract and the computed maximum loss is -$680.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NBIX iron condor?
- The breakeven for the NBIX iron condor priced on this page is roughly $146.80 and $168.20 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 NBIX market-implied 1-standard-deviation expected move is approximately 10.12%; 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 NBIX?
- Iron condors on NBIX are a delta-neutral premium-collection structure that profits if NBIX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NBIX implied volatility affect this iron condor?
- NBIX ATM IV is at 35.30% with IV rank near 29.25%, 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.