NNI Iron Condor Strategy
NNI (Nelnet, Inc.), in the Financial Services sector, (Financial - Credit Services industry), listed on NYSE.
Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliation, and claim processing services. This segment also provides student loan servicing software; business process outsourcing services specialized in contact center management, such as inbound calls, outreach campaigns and sales, and interacting with customers through multi-channels. The Education Technology, Services, and Payment Processing segment offers financial management services; school information system software; website design and cost effective admissions software; FACTS Giving, a donation platform; and customized professional development and coaching services, educational instruction services, and technology products that aid in teacher and student evaluations. It also offers tuition payment plans, and service and technology for student billings, payments, and refunds; solutions for in-person, online, and mobile payment experiences on campus; payment processing services, such as credit card and electronic transfer; faith community engagement, giving management, and learning management services and technologies; and an integrated commerce payment platform, financial management, and tuition payment plan services, as well as a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools. The Communications segment provides fiber optic service to homes and businesses for internet, television, and telephone services.
NNI (Nelnet, Inc.) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $4.43B, a trailing P/E of 10.68, a beta of 0.83 versus the broader market, a 52-week range of 111.82-144.38, average daily share volume of 144K, a public-listing history dating back to 2003, approximately 7K full-time employees. These structural characteristics shape how NNI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places NNI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.68 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NNI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on NNI?
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 NNI snapshot
As of May 15, 2026, spot at $125.69, ATM IV 10.40%, IV rank 0.00%, expected move 2.98%. The iron condor on NNI 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 NNI specifically: NNI IV at 10.40% is on the cheap side of its 1-year range, which means a premium-selling NNI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 2.98% (roughly $3.75 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 NNI expiries trade a higher absolute premium for lower per-day decay. Position sizing on NNI should anchor to the underlying notional of $125.69 per share and to the trader's directional view on NNI stock.
NNI iron condor setup
The NNI 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 NNI near $125.69, 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 NNI 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 NNI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $130.00 | $1.08 |
| Buy 1 | Call | $140.00 | $0.48 |
| Sell 1 | Put | $120.00 | $1.16 |
| Buy 1 | Put | $115.00 | $0.36 |
NNI iron condor risk and reward
- Net Premium / Debit
- +$140.50
- Max Profit (per contract)
- $140.50
- Max Loss (per contract)
- -$859.50
- Breakeven(s)
- $118.60, $131.41
- Risk / Reward Ratio
- 0.163
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.
NNI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NNI. 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% | -$359.50 |
| $27.80 | -77.9% | -$359.50 |
| $55.59 | -55.8% | -$359.50 |
| $83.38 | -33.7% | -$359.50 |
| $111.17 | -11.6% | -$359.50 |
| $138.96 | +10.6% | -$755.32 |
| $166.75 | +32.7% | -$859.50 |
| $194.54 | +54.8% | -$859.50 |
| $222.33 | +76.9% | -$859.50 |
| $250.12 | +99.0% | -$859.50 |
When traders use iron condor on NNI
Iron condors on NNI are a delta-neutral premium-collection structure that profits if NNI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NNI thesis for this iron condor
The market-implied 1-standard-deviation range for NNI extends from approximately $121.94 on the downside to $129.44 on the upside. A NNI iron condor is a delta-neutral premium-collection structure that pays off when NNI 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 NNI IV rank near 0.00% 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 NNI at 10.40%. As a Financial Services name, NNI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NNI-specific events.
NNI 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. NNI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NNI alongside the broader basket even when NNI-specific fundamentals are unchanged. Short-premium structures like a iron condor on NNI carry tail risk when realized volatility exceeds the implied move; review historical NNI earnings reactions and macro stress periods before sizing. Always rebuild the position from current NNI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NNI?
- A iron condor on NNI is the iron condor strategy applied to NNI (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 NNI stock trading near $125.69, the strikes shown on this page are snapped to the nearest listed NNI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NNI 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 NNI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 10.40%), the computed maximum profit is $140.50 per contract and the computed maximum loss is -$859.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NNI iron condor?
- The breakeven for the NNI iron condor priced on this page is roughly $118.60 and $131.41 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 NNI market-implied 1-standard-deviation expected move is approximately 2.98%; 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 NNI?
- Iron condors on NNI are a delta-neutral premium-collection structure that profits if NNI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NNI implied volatility affect this iron condor?
- NNI ATM IV is at 10.40% with IV rank near 0.00%, 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.