PEB Iron Condor Strategy
PEB (Pebblebrook Hotel Trust), in the Real Estate sector, (REIT - Hotel & Motel industry), listed on NYSE.
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (REIT) and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 53 hotels, totaling approximately 13,200 guestrooms across 14 urban and resort markets, with a focus on the west coast gateway cities.
PEB (Pebblebrook Hotel Trust) trades in the Real Estate sector, specifically REIT - Hotel & Motel, with a market capitalization of approximately $1.62B, a beta of 1.45 versus the broader market, a 52-week range of 8.69-14.85, average daily share volume of 2.5M, a public-listing history dating back to 2009, approximately 60 full-time employees. These structural characteristics shape how PEB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates PEB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PEB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PEB?
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 PEB snapshot
As of May 15, 2026, spot at $14.04, ATM IV 16.90%, IV rank 0.86%, expected move 4.85%. The iron condor on PEB 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 PEB specifically: PEB IV at 16.90% is on the cheap side of its 1-year range, which means a premium-selling PEB iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.85% (roughly $0.68 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 PEB expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEB should anchor to the underlying notional of $14.04 per share and to the trader's directional view on PEB stock.
PEB iron condor setup
The PEB 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 PEB near $14.04, the first option leg uses a $14.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEB 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 PEB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $14.74 | N/A |
| Buy 1 | Call | $15.44 | N/A |
| Sell 1 | Put | $13.34 | N/A |
| Buy 1 | Put | $12.64 | N/A |
PEB 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.
PEB iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PEB. 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 PEB
Iron condors on PEB are a delta-neutral premium-collection structure that profits if PEB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PEB thesis for this iron condor
The market-implied 1-standard-deviation range for PEB extends from approximately $13.36 on the downside to $14.72 on the upside. A PEB iron condor is a delta-neutral premium-collection structure that pays off when PEB 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 PEB IV rank near 0.86% 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 PEB at 16.90%. As a Real Estate name, PEB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEB-specific events.
PEB 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. PEB positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PEB alongside the broader basket even when PEB-specific fundamentals are unchanged. Short-premium structures like a iron condor on PEB carry tail risk when realized volatility exceeds the implied move; review historical PEB earnings reactions and macro stress periods before sizing. Always rebuild the position from current PEB chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PEB?
- A iron condor on PEB is the iron condor strategy applied to PEB (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 PEB stock trading near $14.04, the strikes shown on this page are snapped to the nearest listed PEB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PEB 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 PEB iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 16.90%), 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 PEB iron condor?
- The breakeven for the PEB 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 PEB market-implied 1-standard-deviation expected move is approximately 4.85%; 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 PEB?
- Iron condors on PEB are a delta-neutral premium-collection structure that profits if PEB stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PEB implied volatility affect this iron condor?
- PEB ATM IV is at 16.90% with IV rank near 0.86%, 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.