PB Iron Condor Strategy
PB (Prosperity Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. As of December 31, 2021, the company operated 273 full-service banking locations comprising 65 in the Houston area, including The Woodlands; 30 in the South Texas area including Corpus Christi and Victoria; 63 in the Dallas/Fort Worth, Texas area; 22 in the East Texas area; 29 in the Central Texas area, including Austin and San Antonio; 34 in the West Texas area, including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area doing business as LegacyTexas Bank. Prosperity Bancshares, Inc. was founded in 1983 and is based in Houston, Texas.
PB (Prosperity Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $6.69B, a trailing P/E of 12.51, a beta of 0.67 versus the broader market, a 52-week range of 61.07-77.2, average daily share volume of 1.1M, a public-listing history dating back to 1998, approximately 4K full-time employees. These structural characteristics shape how PB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates PB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PB?
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 PB snapshot
As of May 15, 2026, spot at $66.53, ATM IV 32.00%, IV rank 5.21%, expected move 9.17%. The iron condor on PB 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 PB specifically: PB IV at 32.00% is on the cheap side of its 1-year range, which means a premium-selling PB iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.17% (roughly $6.10 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 PB expiries trade a higher absolute premium for lower per-day decay. Position sizing on PB should anchor to the underlying notional of $66.53 per share and to the trader's directional view on PB stock.
PB iron condor setup
The PB 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 PB near $66.53, the first option leg uses a $69.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PB 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 PB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $69.86 | N/A |
| Buy 1 | Call | $73.18 | N/A |
| Sell 1 | Put | $63.20 | N/A |
| Buy 1 | Put | $59.88 | N/A |
PB 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.
PB iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PB. 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 PB
Iron condors on PB are a delta-neutral premium-collection structure that profits if PB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PB thesis for this iron condor
The market-implied 1-standard-deviation range for PB extends from approximately $60.43 on the downside to $72.63 on the upside. A PB iron condor is a delta-neutral premium-collection structure that pays off when PB 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 PB IV rank near 5.21% 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 PB at 32.00%. As a Financial Services name, PB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PB-specific events.
PB 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. PB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PB alongside the broader basket even when PB-specific fundamentals are unchanged. Short-premium structures like a iron condor on PB carry tail risk when realized volatility exceeds the implied move; review historical PB earnings reactions and macro stress periods before sizing. Always rebuild the position from current PB chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PB?
- A iron condor on PB is the iron condor strategy applied to PB (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 PB stock trading near $66.53, the strikes shown on this page are snapped to the nearest listed PB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PB 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 PB iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), 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 PB iron condor?
- The breakeven for the PB 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 PB market-implied 1-standard-deviation expected move is approximately 9.17%; 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 PB?
- Iron condors on PB are a delta-neutral premium-collection structure that profits if PB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PB implied volatility affect this iron condor?
- PB ATM IV is at 32.00% with IV rank near 5.21%, 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.