NTB Iron Condor Strategy
NTB (The Bank of N.T. Butterfield & Son Limited), in the Financial Services sector, (Banks - Diversified industry), listed on NYSE.
The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and interest bearing and non-interest bearing deposits, as well as certificate of deposits. The company's lending portfolio includes residential mortgage lending, automobile lending, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. It also offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. In addition, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, and fiduciary services.
NTB (The Bank of N.T. Butterfield & Son Limited) trades in the Financial Services sector, specifically Banks - Diversified, with a market capitalization of approximately $2.18B, a trailing P/E of 9.03, a beta of 0.50 versus the broader market, a 52-week range of 40.59-57.84, average daily share volume of 165K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how NTB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates NTB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.03 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NTB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on NTB?
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 NTB snapshot
As of May 15, 2026, spot at $54.67, ATM IV 51.20%, IV rank 7.53%, expected move 14.68%. The iron condor on NTB 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 NTB specifically: NTB IV at 51.20% is on the cheap side of its 1-year range, which means a premium-selling NTB iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.68% (roughly $8.02 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 NTB expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTB should anchor to the underlying notional of $54.67 per share and to the trader's directional view on NTB stock.
NTB iron condor setup
The NTB 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 NTB near $54.67, the first option leg uses a $57.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTB 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 NTB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $57.40 | N/A |
| Buy 1 | Call | $60.14 | N/A |
| Sell 1 | Put | $51.94 | N/A |
| Buy 1 | Put | $49.20 | N/A |
NTB 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.
NTB iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on NTB. 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 NTB
Iron condors on NTB are a delta-neutral premium-collection structure that profits if NTB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
NTB thesis for this iron condor
The market-implied 1-standard-deviation range for NTB extends from approximately $46.65 on the downside to $62.69 on the upside. A NTB iron condor is a delta-neutral premium-collection structure that pays off when NTB 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 NTB IV rank near 7.53% 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 NTB at 51.20%. As a Financial Services name, NTB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTB-specific events.
NTB 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. NTB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NTB alongside the broader basket even when NTB-specific fundamentals are unchanged. Short-premium structures like a iron condor on NTB carry tail risk when realized volatility exceeds the implied move; review historical NTB earnings reactions and macro stress periods before sizing. Always rebuild the position from current NTB chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on NTB?
- A iron condor on NTB is the iron condor strategy applied to NTB (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 NTB stock trading near $54.67, the strikes shown on this page are snapped to the nearest listed NTB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NTB 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 NTB iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 51.20%), 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 NTB iron condor?
- The breakeven for the NTB 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 NTB market-implied 1-standard-deviation expected move is approximately 14.68%; 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 NTB?
- Iron condors on NTB are a delta-neutral premium-collection structure that profits if NTB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current NTB implied volatility affect this iron condor?
- NTB ATM IV is at 51.20% with IV rank near 7.53%, 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.