PGY Iron Condor Strategy
PGY (Pagaya Technologies Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Pagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and the Cayman Islands. It develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent financial institutions, auto finance providers, and brokers. The company was founded in 2016 and is headquartered in Tel Aviv, Israel.
PGY (Pagaya Technologies Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.09B, a trailing P/E of 11.82, a beta of 5.44 versus the broader market, a 52-week range of 10.4-44.99, average daily share volume of 3.4M, a public-listing history dating back to 2021, approximately 527 full-time employees. These structural characteristics shape how PGY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 5.44 indicates PGY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.82 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a iron condor on PGY?
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 PGY snapshot
As of May 15, 2026, spot at $13.54, ATM IV 73.90%, IV rank 28.26%, expected move 21.19%. The iron condor on PGY 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 98-day expiry.
Why this iron condor structure on PGY specifically: PGY IV at 73.90% is on the cheap side of its 1-year range, which means a premium-selling PGY iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.19% (roughly $2.87 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PGY expiries trade a higher absolute premium for lower per-day decay. Position sizing on PGY should anchor to the underlying notional of $13.54 per share and to the trader's directional view on PGY stock.
PGY iron condor setup
The PGY 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 PGY near $13.54, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PGY chain at a 98-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 PGY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $14.00 | $2.18 |
| Buy 1 | Call | $15.00 | $1.80 |
| Sell 1 | Put | $13.00 | $2.00 |
| Buy 1 | Put | $12.00 | $1.53 |
PGY iron condor risk and reward
- Net Premium / Debit
- +$85.00
- Max Profit (per contract)
- $85.00
- Max Loss (per contract)
- -$15.00
- Breakeven(s)
- $12.15, $14.85
- Risk / Reward Ratio
- 5.667
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.
PGY iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PGY. 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 | -99.9% | -$15.00 |
| $3.00 | -77.8% | -$15.00 |
| $6.00 | -55.7% | -$15.00 |
| $8.99 | -33.6% | -$15.00 |
| $11.98 | -11.5% | -$15.00 |
| $14.97 | +10.6% | -$12.33 |
| $17.97 | +32.7% | -$15.00 |
| $20.96 | +54.8% | -$15.00 |
| $23.95 | +76.9% | -$15.00 |
| $26.94 | +99.0% | -$15.00 |
When traders use iron condor on PGY
Iron condors on PGY are a delta-neutral premium-collection structure that profits if PGY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PGY thesis for this iron condor
The market-implied 1-standard-deviation range for PGY extends from approximately $10.67 on the downside to $16.41 on the upside. A PGY iron condor is a delta-neutral premium-collection structure that pays off when PGY 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 PGY IV rank near 28.26% 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 PGY at 73.90%. As a Technology name, PGY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PGY-specific events.
PGY 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. PGY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PGY alongside the broader basket even when PGY-specific fundamentals are unchanged. Short-premium structures like a iron condor on PGY carry tail risk when realized volatility exceeds the implied move; review historical PGY earnings reactions and macro stress periods before sizing. Always rebuild the position from current PGY chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PGY?
- A iron condor on PGY is the iron condor strategy applied to PGY (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 PGY stock trading near $13.54, the strikes shown on this page are snapped to the nearest listed PGY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PGY 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 PGY iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 73.90%), the computed maximum profit is $85.00 per contract and the computed maximum loss is -$15.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PGY iron condor?
- The breakeven for the PGY iron condor priced on this page is roughly $12.15 and $14.85 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 PGY market-implied 1-standard-deviation expected move is approximately 21.19%; 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 PGY?
- Iron condors on PGY are a delta-neutral premium-collection structure that profits if PGY stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PGY implied volatility affect this iron condor?
- PGY ATM IV is at 73.90% with IV rank near 28.26%, 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.