OFG Iron Condor Strategy
OFG (OFG Bancorp), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities.
OFG (OFG Bancorp) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.87B, a trailing P/E of 8.85, a beta of 0.73 versus the broader market, a 52-week range of 35.71-46.85, average daily share volume of 330K, a public-listing history dating back to 1987, approximately 2K full-time employees. These structural characteristics shape how OFG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places OFG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.85 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OFG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on OFG?
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 OFG snapshot
As of May 15, 2026, spot at $43.97, ATM IV 40.10%, IV rank 4.72%, expected move 11.50%. The iron condor on OFG 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 OFG specifically: OFG IV at 40.10% is on the cheap side of its 1-year range, which means a premium-selling OFG iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.50% (roughly $5.05 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 OFG expiries trade a higher absolute premium for lower per-day decay. Position sizing on OFG should anchor to the underlying notional of $43.97 per share and to the trader's directional view on OFG stock.
OFG iron condor setup
The OFG 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 OFG near $43.97, the first option leg uses a $46.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OFG 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 OFG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $46.17 | N/A |
| Buy 1 | Call | $48.37 | N/A |
| Sell 1 | Put | $41.77 | N/A |
| Buy 1 | Put | $39.57 | N/A |
OFG 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.
OFG iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on OFG. 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 OFG
Iron condors on OFG are a delta-neutral premium-collection structure that profits if OFG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
OFG thesis for this iron condor
The market-implied 1-standard-deviation range for OFG extends from approximately $38.92 on the downside to $49.02 on the upside. A OFG iron condor is a delta-neutral premium-collection structure that pays off when OFG 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 OFG IV rank near 4.72% 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 OFG at 40.10%. As a Financial Services name, OFG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OFG-specific events.
OFG 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. OFG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OFG alongside the broader basket even when OFG-specific fundamentals are unchanged. Short-premium structures like a iron condor on OFG carry tail risk when realized volatility exceeds the implied move; review historical OFG earnings reactions and macro stress periods before sizing. Always rebuild the position from current OFG chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on OFG?
- A iron condor on OFG is the iron condor strategy applied to OFG (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 OFG stock trading near $43.97, the strikes shown on this page are snapped to the nearest listed OFG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OFG 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 OFG iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 40.10%), 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 OFG iron condor?
- The breakeven for the OFG 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 OFG market-implied 1-standard-deviation expected move is approximately 11.50%; 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 OFG?
- Iron condors on OFG are a delta-neutral premium-collection structure that profits if OFG stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current OFG implied volatility affect this iron condor?
- OFG ATM IV is at 40.10% with IV rank near 4.72%, 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.