POWI Iron Condor Strategy
POWI (Power Integrations, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Power Integrations, Inc. is a global leader in the development, manufacturing, and sale of analog and mixed-signal integrated circuits (ICs), alongside other essential electronic components and circuitry. Their primary expertise lies in delivering solutions for high-voltage power conversion worldwide. The company offers a comprehensive portfolio of alternating current to direct current (AC-DC) power conversion products. These solutions cover a broad power range, from outputs of less than one watt up to approximately 500 watts. They are integral to numerous applications such as mobile device chargers, various consumer appliances (including utility meters, LCD monitors, and power supplies for desktop computers and televisions), and LED lighting. Furthermore, Power Integrations also provides specialized high-power conversion technologies for demanding industrial applications like industrial motors, solar and wind energy systems, electric vehicles, and high-voltage DC transmission systems.
POWI (Power Integrations, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.42B, a trailing P/E of 265.34, a beta of 1.57 versus the broader market, a 52-week range of 30.86-91.18, average daily share volume of 1.2M, a public-listing history dating back to 1997, approximately 865 full-time employees. These structural characteristics shape how POWI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates POWI 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 265.34 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. POWI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on POWI?
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 POWI snapshot
As of June 29, 2026, spot at $78.29, ATM IV 79.60%, IV rank 20.43%, expected move 22.82%. The iron condor on POWI 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 18-day expiry.
Why this iron condor structure on POWI specifically: POWI IV at 79.60% is on the cheap side of its 1-year range, which means a premium-selling POWI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 22.82% (roughly $17.87 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated POWI expiries trade a higher absolute premium for lower per-day decay. Position sizing on POWI should anchor to the underlying notional of $78.29 per share and to the trader's directional view on POWI stock.
POWI iron condor setup
The POWI 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 POWI near $78.29, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed POWI chain at a 18-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 POWI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $80.00 | $4.75 |
| Buy 1 | Call | $85.00 | $2.88 |
| Sell 1 | Put | $75.00 | $3.85 |
| Buy 1 | Put | $70.00 | $1.68 |
POWI iron condor risk and reward
- Net Premium / Debit
- +$405.00
- Max Profit (per contract)
- $405.00
- Max Loss (per contract)
- -$95.00
- Breakeven(s)
- $70.95, $84.05
- Risk / Reward Ratio
- 4.263
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.
POWI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on POWI. 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% | -$95.00 |
| $17.32 | -77.9% | -$95.00 |
| $34.63 | -55.8% | -$95.00 |
| $51.94 | -33.7% | -$95.00 |
| $69.25 | -11.6% | -$95.00 |
| $86.56 | +10.6% | -$95.00 |
| $103.87 | +32.7% | -$95.00 |
| $121.17 | +54.8% | -$95.00 |
| $138.48 | +76.9% | -$95.00 |
| $155.79 | +99.0% | -$95.00 |
When traders use iron condor on POWI
Iron condors on POWI are a delta-neutral premium-collection structure that profits if POWI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
POWI thesis for this iron condor
The market-implied 1-standard-deviation range for POWI extends from approximately $60.42 on the downside to $96.16 on the upside. A POWI iron condor is a delta-neutral premium-collection structure that pays off when POWI 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 POWI IV rank near 20.43% 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 POWI at 79.60%. As a Technology name, POWI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to POWI-specific events.
POWI 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. POWI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move POWI alongside the broader basket even when POWI-specific fundamentals are unchanged. Short-premium structures like a iron condor on POWI carry tail risk when realized volatility exceeds the implied move; review historical POWI earnings reactions and macro stress periods before sizing. Always rebuild the position from current POWI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on POWI?
- A iron condor on POWI is the iron condor strategy applied to POWI (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 POWI stock trading near $78.29, the strikes shown on this page are snapped to the nearest listed POWI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are POWI 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 POWI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 79.60%), the computed maximum profit is $405.00 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a POWI iron condor?
- The breakeven for the POWI iron condor priced on this page is roughly $70.95 and $84.05 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 POWI market-implied 1-standard-deviation expected move is approximately 22.82%; 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 POWI?
- Iron condors on POWI are a delta-neutral premium-collection structure that profits if POWI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current POWI implied volatility affect this iron condor?
- POWI ATM IV is at 79.60% with IV rank near 20.43%, 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.