PEGA Iron Condor Strategy
PEGA (Pegasystems Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. It provides Pega Platform, an application development product for clients; and Pega Infinity, a software platform that unifies customer engagement and digital process automation. The company also offers customer engagement applications, including Pega Customer Decision Hub that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Sales Automation to automate and manage the sales process; and Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity. In addition, it provides intelligent automation software; Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and guidance, implementation, and technical support services. The company primarily markets its software and services to financial services, life sciences, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.
PEGA (Pegasystems Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $5.47B, a trailing P/E of 16.21, a beta of 0.88 versus the broader market, a 52-week range of 32.53-68.1, average daily share volume of 2.3M, a public-listing history dating back to 1996, approximately 5K full-time employees. These structural characteristics shape how PEGA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places PEGA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PEGA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on PEGA?
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 PEGA snapshot
As of May 15, 2026, spot at $33.80, ATM IV 55.10%, IV rank 10.29%, expected move 15.80%. The iron condor on PEGA 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 217-day expiry.
Why this iron condor structure on PEGA specifically: PEGA IV at 55.10% is on the cheap side of its 1-year range, which means a premium-selling PEGA iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.80% (roughly $5.34 on the underlying). The 217-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PEGA expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEGA should anchor to the underlying notional of $33.80 per share and to the trader's directional view on PEGA stock.
PEGA iron condor setup
The PEGA 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 PEGA near $33.80, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEGA chain at a 217-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 PEGA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $35.00 | $5.95 |
| Buy 1 | Call | $37.50 | $5.10 |
| Sell 1 | Put | $32.50 | $5.50 |
| Buy 1 | Put | $30.00 | $4.25 |
PEGA iron condor risk and reward
- Net Premium / Debit
- +$210.00
- Max Profit (per contract)
- $210.00
- Max Loss (per contract)
- -$40.00
- Breakeven(s)
- $30.40, $37.10
- Risk / Reward Ratio
- 5.250
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.
PEGA iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PEGA. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$40.00 |
| $7.48 | -77.9% | -$40.00 |
| $14.95 | -55.8% | -$40.00 |
| $22.43 | -33.6% | -$40.00 |
| $29.90 | -11.5% | -$40.00 |
| $37.37 | +10.6% | -$27.13 |
| $44.84 | +32.7% | -$40.00 |
| $52.32 | +54.8% | -$40.00 |
| $59.79 | +76.9% | -$40.00 |
| $67.26 | +99.0% | -$40.00 |
When traders use iron condor on PEGA
Iron condors on PEGA are a delta-neutral premium-collection structure that profits if PEGA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PEGA thesis for this iron condor
The market-implied 1-standard-deviation range for PEGA extends from approximately $28.46 on the downside to $39.14 on the upside. A PEGA iron condor is a delta-neutral premium-collection structure that pays off when PEGA 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 PEGA IV rank near 10.29% 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 PEGA at 55.10%. As a Technology name, PEGA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEGA-specific events.
PEGA 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. PEGA positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PEGA alongside the broader basket even when PEGA-specific fundamentals are unchanged. Short-premium structures like a iron condor on PEGA carry tail risk when realized volatility exceeds the implied move; review historical PEGA earnings reactions and macro stress periods before sizing. Always rebuild the position from current PEGA chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PEGA?
- A iron condor on PEGA is the iron condor strategy applied to PEGA (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 PEGA stock trading near $33.80, the strikes shown on this page are snapped to the nearest listed PEGA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PEGA 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 PEGA iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 55.10%), the computed maximum profit is $210.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PEGA iron condor?
- The breakeven for the PEGA iron condor priced on this page is roughly $30.40 and $37.10 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 PEGA market-implied 1-standard-deviation expected move is approximately 15.80%; 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 PEGA?
- Iron condors on PEGA are a delta-neutral premium-collection structure that profits if PEGA stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PEGA implied volatility affect this iron condor?
- PEGA ATM IV is at 55.10% with IV rank near 10.29%, 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.