NEOG Iron Condor Strategy
NEOG (Neogen Corporation), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Neogen Corporation, together with its subsidiaries, develops, manufactures, and markets various products for food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells. This segment offers its products primarily to food and feed producers and processors; grain producers and processors; producers of cookies, crackers, candy, ice cream, and other processed foods; meat and poultry processors, seafood processors, fruit and vegetable producers, and dairies; laboratories; and producers of pharmaceuticals, cosmetics, and veterinary vaccines. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodenticides, cleaners, disinfectants, insecticides, and genomics testing services for the animal safety market. This segment offers various products for researchers to detect biologically active substances.
NEOG (Neogen Corporation) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $1.89B, a beta of 1.84 versus the broader market, a 52-week range of 4.53-11.43, average daily share volume of 2.6M, a public-listing history dating back to 1989, approximately 3K full-time employees. These structural characteristics shape how NEOG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.84 indicates NEOG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a iron condor on NEOG?
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 NEOG snapshot
As of May 15, 2026, spot at $8.18, ATM IV 96.30%, IV rank 79.39%, expected move 27.61%. The iron condor on NEOG 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 NEOG specifically: NEOG IV at 96.30% is rich versus its 1-year range, which favors premium-selling structures like a NEOG iron condor, with a market-implied 1-standard-deviation move of approximately 27.61% (roughly $2.26 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 NEOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEOG should anchor to the underlying notional of $8.18 per share and to the trader's directional view on NEOG stock.
NEOG iron condor setup
The NEOG 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 NEOG near $8.18, the first option leg uses a $8.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEOG 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 NEOG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $8.59 | N/A |
| Buy 1 | Call | $9.00 | N/A |
| Sell 1 | Put | $7.77 | N/A |
| Buy 1 | Put | $7.36 | N/A |
NEOG 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.
NEOG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NEOG. 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 NEOG
Iron condors on NEOG are a delta-neutral premium-collection structure that profits if NEOG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NEOG thesis for this iron condor
The market-implied 1-standard-deviation range for NEOG extends from approximately $5.92 on the downside to $10.44 on the upside. A NEOG iron condor is a delta-neutral premium-collection structure that pays off when NEOG 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 NEOG IV rank near 79.39% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on NEOG at 96.30%. As a Healthcare name, NEOG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEOG-specific events.
NEOG 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. NEOG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEOG alongside the broader basket even when NEOG-specific fundamentals are unchanged. Short-premium structures like a iron condor on NEOG carry tail risk when realized volatility exceeds the implied move; review historical NEOG earnings reactions and macro stress periods before sizing. Always rebuild the position from current NEOG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NEOG?
- A iron condor on NEOG is the iron condor strategy applied to NEOG (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 NEOG stock trading near $8.18, the strikes shown on this page are snapped to the nearest listed NEOG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEOG 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 NEOG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 96.30%), 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 NEOG iron condor?
- The breakeven for the NEOG 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 NEOG market-implied 1-standard-deviation expected move is approximately 27.61%; 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 NEOG?
- Iron condors on NEOG are a delta-neutral premium-collection structure that profits if NEOG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NEOG implied volatility affect this iron condor?
- NEOG ATM IV is at 96.30% with IV rank near 79.39%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.