PAX Iron Condor Strategy
PAX (Patria Investments Ltd), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Patria Investments Limited operates as a private market investment firm. It specializes in investments in private equity, secondary direct and indirect and venture capital with focus in middle market, buyout and growth capital investments. It seeks to be sector agnostic with focus on agribusiness, power & energy, healthcare, logistics & transportations, food & beverage, agricultural products, packaged foods and meats, education services, outsourced business services, and digital & tech services. It prefers to invest globally with focus on Latin America, Europe, United States, North America and Brazil. It seeks to invest between $38.48 million and $72.14 million per transaction. The firm seeks a majority or minority stake in its portfolio companies.
PAX (Patria Investments Ltd) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.75B, a trailing P/E of 24.23, a beta of 0.74 versus the broader market, a 52-week range of 10.72-17.8, average daily share volume of 954K, a public-listing history dating back to 2021, approximately 494 full-time employees. These structural characteristics shape how PAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places PAX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PAX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PAX?
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 PAX snapshot
As of June 29, 2026, spot at $10.73, ATM IV 307.50%, IV rank 63.63%, expected move 88.16%. The iron condor on PAX 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 PAX specifically: PAX IV at 307.50% is mid-range versus its 1-year history, so the credit collected on a PAX iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 88.16% (roughly $9.46 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 PAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAX should anchor to the underlying notional of $10.73 per share and to the trader's directional view on PAX stock.
PAX iron condor setup
The PAX 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 PAX near $10.73, the first option leg uses a $11.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAX 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 PAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $11.27 | N/A |
| Buy 1 | Call | $11.80 | N/A |
| Sell 1 | Put | $10.19 | N/A |
| Buy 1 | Put | $9.66 | N/A |
PAX 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.
PAX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PAX. 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 PAX
Iron condors on PAX are a delta-neutral premium-collection structure that profits if PAX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PAX thesis for this iron condor
The market-implied 1-standard-deviation range for PAX extends from approximately $1.27 on the downside to $20.19 on the upside. A PAX iron condor is a delta-neutral premium-collection structure that pays off when PAX 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 PAX IV rank near 63.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on PAX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAX-specific events.
PAX 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. PAX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAX alongside the broader basket even when PAX-specific fundamentals are unchanged. Short-premium structures like a iron condor on PAX carry tail risk when realized volatility exceeds the implied move; review historical PAX earnings reactions and macro stress periods before sizing. Always rebuild the position from current PAX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PAX?
- A iron condor on PAX is the iron condor strategy applied to PAX (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 PAX stock trading near $10.73, the strikes shown on this page are snapped to the nearest listed PAX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PAX 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 PAX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 307.50%), 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 PAX iron condor?
- The breakeven for the PAX 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 PAX market-implied 1-standard-deviation expected move is approximately 88.16%; 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 PAX?
- Iron condors on PAX are a delta-neutral premium-collection structure that profits if PAX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PAX implied volatility affect this iron condor?
- PAX ATM IV is at 307.50% with IV rank near 63.63%, 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.