NOW Iron Condor Strategy
NOW (ServiceNow, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; IT business management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT Asset Management to automate IT asset lifecycles; and security operations that connects with internal and third party. In addition, it offers governance, risk, and compliance product to manage risk and resilience; human resources, legal, and workplace service delivery products; safe workplace applications; customer service management product; and field service management applications. Further, it provides App Engine product; IntegrationHub enables application to extend workflows; and professional, industry solutions, and customer support services. It serves government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through direct sales team and resale partners.
NOW (ServiceNow, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $89.78B, a trailing P/E of 51.29, a beta of 0.82 versus the broader market, a 52-week range of 81.24-211.478, average daily share volume of 22.1M, a public-listing history dating back to 2012, approximately 26K full-time employees. These structural characteristics shape how NOW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places NOW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 51.29 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a iron condor on NOW?
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 NOW snapshot
As of May 15, 2026, spot at $95.25, ATM IV 58.41%, IV rank 63.12%, expected move 16.75%. The iron condor on NOW 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 28-day expiry.
Why this iron condor structure on NOW specifically: NOW IV at 58.41% is mid-range versus its 1-year history, so the credit collected on a NOW iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 16.75% (roughly $15.95 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NOW expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOW should anchor to the underlying notional of $95.25 per share and to the trader's directional view on NOW stock.
NOW iron condor setup
The NOW 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 NOW near $95.25, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NOW chain at a 28-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 NOW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $100.00 | $4.25 |
| Buy 1 | Call | $105.00 | $2.88 |
| Sell 1 | Put | $90.00 | $3.65 |
| Buy 1 | Put | $86.00 | $2.28 |
NOW iron condor risk and reward
- Net Premium / Debit
- +$275.00
- Max Profit (per contract)
- $275.00
- Max Loss (per contract)
- -$225.00
- Breakeven(s)
- $87.25, $102.75
- Risk / Reward Ratio
- 1.222
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.
NOW iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NOW. 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% | -$125.00 |
| $21.07 | -77.9% | -$125.00 |
| $42.13 | -55.8% | -$125.00 |
| $63.19 | -33.7% | -$125.00 |
| $84.25 | -11.6% | -$125.00 |
| $105.31 | +10.6% | -$225.00 |
| $126.37 | +32.7% | -$225.00 |
| $147.42 | +54.8% | -$225.00 |
| $168.48 | +76.9% | -$225.00 |
| $189.54 | +99.0% | -$225.00 |
When traders use iron condor on NOW
Iron condors on NOW are a delta-neutral premium-collection structure that profits if NOW stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NOW thesis for this iron condor
The market-implied 1-standard-deviation range for NOW extends from approximately $79.30 on the downside to $111.20 on the upside. A NOW iron condor is a delta-neutral premium-collection structure that pays off when NOW 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 NOW IV rank near 63.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on NOW should anchor more to the directional view and the expected-move geometry. As a Technology name, NOW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NOW-specific events.
NOW 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. NOW positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NOW alongside the broader basket even when NOW-specific fundamentals are unchanged. Short-premium structures like a iron condor on NOW carry tail risk when realized volatility exceeds the implied move; review historical NOW earnings reactions and macro stress periods before sizing. Always rebuild the position from current NOW chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NOW?
- A iron condor on NOW is the iron condor strategy applied to NOW (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 NOW stock trading near $95.25, the strikes shown on this page are snapped to the nearest listed NOW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NOW 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 NOW iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 58.41%), the computed maximum profit is $275.00 per contract and the computed maximum loss is -$225.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NOW iron condor?
- The breakeven for the NOW iron condor priced on this page is roughly $87.25 and $102.75 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 NOW market-implied 1-standard-deviation expected move is approximately 16.75%; 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 NOW?
- Iron condors on NOW are a delta-neutral premium-collection structure that profits if NOW stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NOW implied volatility affect this iron condor?
- NOW ATM IV is at 58.41% with IV rank near 63.12%, 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.