PBYI Iron Condor Strategy
PBYI (Puma Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company's drug candidates include PB272 neratinib (oral) for the patients with early stage HER2-overexpressed/amplified breast cancer; PB272 (neratinib, oral) for the use of neratinib in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer; PB272 (neratinib, oral) for HER2 mutation-positive solid tumors. It has a license agreement with Pfizer, Inc.; and sub-license agreement with Specialised Therapeutics Asia Pte Ltd., CANbridge BIOMED Limited, Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.
PBYI (Puma Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $364.9M, a trailing P/E of 14.95, a beta of 1.23 versus the broader market, a 52-week range of 2.85-7.9, average daily share volume of 358K, a public-listing history dating back to 2012, approximately 172 full-time employees. These structural characteristics shape how PBYI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places PBYI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on PBYI?
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 PBYI snapshot
As of May 15, 2026, spot at $6.93, ATM IV 98.90%, IV rank 19.16%, expected move 28.35%. The iron condor on PBYI 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 PBYI specifically: PBYI IV at 98.90% is on the cheap side of its 1-year range, which means a premium-selling PBYI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.35% (roughly $1.96 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 PBYI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PBYI should anchor to the underlying notional of $6.93 per share and to the trader's directional view on PBYI stock.
PBYI iron condor setup
The PBYI 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 PBYI near $6.93, the first option leg uses a $7.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PBYI 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 PBYI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $7.28 | N/A |
| Buy 1 | Call | $7.62 | N/A |
| Sell 1 | Put | $6.58 | N/A |
| Buy 1 | Put | $6.24 | N/A |
PBYI 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.
PBYI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PBYI. 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 PBYI
Iron condors on PBYI are a delta-neutral premium-collection structure that profits if PBYI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PBYI thesis for this iron condor
The market-implied 1-standard-deviation range for PBYI extends from approximately $4.97 on the downside to $8.89 on the upside. A PBYI iron condor is a delta-neutral premium-collection structure that pays off when PBYI 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 PBYI IV rank near 19.16% 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 PBYI at 98.90%. As a Healthcare name, PBYI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PBYI-specific events.
PBYI 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. PBYI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PBYI alongside the broader basket even when PBYI-specific fundamentals are unchanged. Short-premium structures like a iron condor on PBYI carry tail risk when realized volatility exceeds the implied move; review historical PBYI earnings reactions and macro stress periods before sizing. Always rebuild the position from current PBYI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PBYI?
- A iron condor on PBYI is the iron condor strategy applied to PBYI (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 PBYI stock trading near $6.93, the strikes shown on this page are snapped to the nearest listed PBYI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PBYI 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 PBYI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 98.90%), 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 PBYI iron condor?
- The breakeven for the PBYI 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 PBYI market-implied 1-standard-deviation expected move is approximately 28.35%; 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 PBYI?
- Iron condors on PBYI are a delta-neutral premium-collection structure that profits if PBYI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PBYI implied volatility affect this iron condor?
- PBYI ATM IV is at 98.90% with IV rank near 19.16%, 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.