PAGS Iron Condor Strategy
PAGS (PagSeguro Digital Ltd.), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.
PagSeguro Digital Ltd., together with its subsidiaries, engages in the provision of financial and payment solutions for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. It provides digital banking solutions, including deposits, top-ups, debt management services, tax collections, wire transfers, ATM withdrawals, and various online and point-of-sale (POS) payment solutions; cards, such as debit, credit, cash, and prepaid cards; and credit products comprising FGTS withdrawals, payroll loans, working capital loans, and overdraft accounts. The company offers insurance services, including account, card, home, business, health assistance, life, and credit life insurance; investment services, such as investment and portfolio advisory, financial education, brokerage, fund management, treasury, and research services; and operates Shopping PagBank, a marketplace for various brands. In addition, it provides software solutions comprising PagVendas, a POS software app; ClubPag, a marketing tool that allows merchants to advertise across client base, available for POS devices; and PlugPag, a wireless solution that connects the machine to the commercial automation system, via Bluetooth technology. The company was founded in 2006 and is headquartered in São Paulo, Brazil.
PAGS (PagSeguro Digital Ltd.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $2.62B, a trailing P/E of 6.13, a beta of 1.30 versus the broader market, a 52-week range of 7.735-12.32, average daily share volume of 3.6M, a public-listing history dating back to 2018, approximately 7K full-time employees. These structural characteristics shape how PAGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places PAGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.13 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PAGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PAGS?
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 PAGS snapshot
As of June 29, 2026, spot at $9.02, ATM IV 467.50%, IV rank 98.82%, expected move 134.03%. The iron condor on PAGS 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 18-day expiry.
Why this iron condor structure on PAGS specifically: PAGS IV at 467.50% is rich versus its 1-year range, which favors premium-selling structures like a PAGS iron condor, with a market-implied 1-standard-deviation move of approximately 134.03% (roughly $12.09 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PAGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAGS should anchor to the underlying notional of $9.02 per share and to the trader's directional view on PAGS stock.
PAGS iron condor setup
The PAGS 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 PAGS near $9.02, the first option leg uses a $9.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAGS chain at a 18-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 PAGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $9.47 | N/A |
| Buy 1 | Call | $9.92 | N/A |
| Sell 1 | Put | $8.57 | N/A |
| Buy 1 | Put | $8.12 | N/A |
PAGS 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.
PAGS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PAGS. 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 PAGS
Iron condors on PAGS are a delta-neutral premium-collection structure that profits if PAGS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PAGS thesis for this iron condor
The market-implied 1-standard-deviation range for PAGS extends from approximately $-3.07 on the downside to $21.11 on the upside. A PAGS iron condor is a delta-neutral premium-collection structure that pays off when PAGS 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 PAGS IV rank near 98.82% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PAGS at 467.50%. As a Industrials name, PAGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAGS-specific events.
PAGS 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. PAGS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAGS alongside the broader basket even when PAGS-specific fundamentals are unchanged. Short-premium structures like a iron condor on PAGS carry tail risk when realized volatility exceeds the implied move; review historical PAGS earnings reactions and macro stress periods before sizing. Always rebuild the position from current PAGS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PAGS?
- A iron condor on PAGS is the iron condor strategy applied to PAGS (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 PAGS stock trading near $9.02, the strikes shown on this page are snapped to the nearest listed PAGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PAGS 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 PAGS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 467.50%), 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 PAGS iron condor?
- The breakeven for the PAGS 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 PAGS market-implied 1-standard-deviation expected move is approximately 134.03%; 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 PAGS?
- Iron condors on PAGS are a delta-neutral premium-collection structure that profits if PAGS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PAGS implied volatility affect this iron condor?
- PAGS ATM IV is at 467.50% with IV rank near 98.82%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.