OABI Iron Condor Strategy
OABI (OmniAb, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
OmniAb, Inc., a biotechnology company, provides therapeutic antibody discovery technologies in the United States. The company's discovery platform provides industry partners access to the diverse antibody repertoires and screening technologies to enable discovery of next-generation therapeutics. Its OmniAb platform is the biological intelligence of proprietary transgenic animals, including OmniRat, OmniChicken, and OmniMouse that have been genetically modified to generate antibodies with human sequences to facilitate development of human therapeutic candidates. The company's OmniFlic (transgenic rat) and OmniClic (transgenic chicken) address industry needs for bispecific antibody applications though a common light chain approach, and OmniTaur that features unique structural attributes of cow antibodies for complex targets. The company was founded in 2012 and is headquartered in Emeryville, California.
OABI (OmniAb, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $239.4M, a beta of 0.62 versus the broader market, a 52-week range of 1.22-2.295, average daily share volume of 507K, a public-listing history dating back to 2021, approximately 114 full-time employees. These structural characteristics shape how OABI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates OABI 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 OABI?
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 OABI snapshot
As of May 15, 2026, spot at $2.19, ATM IV 239.10%, IV rank 46.57%, expected move 68.55%. The iron condor on OABI 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 OABI specifically: OABI IV at 239.10% is mid-range versus its 1-year history, so the credit collected on a OABI iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 68.55% (roughly $1.50 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 OABI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OABI should anchor to the underlying notional of $2.19 per share and to the trader's directional view on OABI stock.
OABI iron condor setup
The OABI 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 OABI near $2.19, the first option leg uses a $2.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OABI 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 OABI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $2.30 | N/A |
| Buy 1 | Call | $2.41 | N/A |
| Sell 1 | Put | $2.08 | N/A |
| Buy 1 | Put | $1.97 | N/A |
OABI 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.
OABI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on OABI. 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 OABI
Iron condors on OABI are a delta-neutral premium-collection structure that profits if OABI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
OABI thesis for this iron condor
The market-implied 1-standard-deviation range for OABI extends from approximately $0.69 on the downside to $3.69 on the upside. A OABI iron condor is a delta-neutral premium-collection structure that pays off when OABI 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 OABI IV rank near 46.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on OABI should anchor more to the directional view and the expected-move geometry. As a Healthcare name, OABI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OABI-specific events.
OABI 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. OABI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OABI alongside the broader basket even when OABI-specific fundamentals are unchanged. Short-premium structures like a iron condor on OABI carry tail risk when realized volatility exceeds the implied move; review historical OABI earnings reactions and macro stress periods before sizing. Always rebuild the position from current OABI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on OABI?
- A iron condor on OABI is the iron condor strategy applied to OABI (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 OABI stock trading near $2.19, the strikes shown on this page are snapped to the nearest listed OABI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OABI 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 OABI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 239.10%), 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 OABI iron condor?
- The breakeven for the OABI 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 OABI market-implied 1-standard-deviation expected move is approximately 68.55%; 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 OABI?
- Iron condors on OABI are a delta-neutral premium-collection structure that profits if OABI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current OABI implied volatility affect this iron condor?
- OABI ATM IV is at 239.10% with IV rank near 46.57%, 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.