PRLD Iron Condor Strategy
PRLD (Prelude Therapeutics Incorporated), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Prelude Therapeutics, Inc. is a clinical-stage precision oncology company focused on identifying and developing innovative, targeted cancer treatments for patient populations with unmet medical needs. Its pipeline includes PRT543, currently undergoing Phase 1 clinical evaluation for certain solid tumors and myeloid malignancies. Another asset, PRT811, is also in Phase 1 trials, targeting various solid tumors, notably glioblastoma multiforme. The company is additionally progressing PRT1419, a potent and selective inhibitor of the anti-apoptotic protein; PRT2527, a powerful and highly kinome-selective CDK9 inhibitor; PRT-SCA2, which is in preclinical development for several genomically selected cancers; PRT3645, a brain-penetrant molecule that precisely and effectively targets CDK4/6; and PRT-K4, another preclinical compound for solid tumors. Founded in 2016, the firm's headquarters are located in Wilmington, Delaware.
PRLD (Prelude Therapeutics Incorporated) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $326.2M, a beta of 0.95 versus the broader market, a 52-week range of 0.82-5.8973, average daily share volume of 440K, a public-listing history dating back to 2020, approximately 79 full-time employees. These structural characteristics shape how PRLD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places PRLD 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 PRLD?
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.
PRLD snapshot
As of August 14, 2026, spot at $5.55, ATM IV 67.70%, IV rank 14.36%, expected move 19.41%. The iron condor on PRLD below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on PRLD specifically: PRLD IV at 67.70% is on the cheap side of its 1-year range, which means a premium-selling PRLD iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.41% (roughly $1.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRLD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRLD should anchor to the underlying notional of $5.55 per share and to the trader's directional view on PRLD stock.
PRLD iron condor setup
The PRLD 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 PRLD at $5.55 on that close, the first option leg uses a $5.83 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRLD chain at a 35-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 PRLD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $5.83 | N/A |
| Buy 1 | Call | $6.11 | N/A |
| Sell 1 | Put | $5.27 | N/A |
| Buy 1 | Put | $5.00 | N/A |
PRLD 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.
PRLD iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on PRLD. 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 PRLD
Iron condors on PRLD are a delta-neutral premium-collection structure that profits if PRLD stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
PRLD thesis for this iron condor
The market-implied 1-standard-deviation range for PRLD extends from approximately $4.47 on the downside to $6.63 on the upside. A PRLD iron condor is a delta-neutral premium-collection structure that pays off when PRLD 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 PRLD IV rank near 14.36% 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 PRLD at 67.70%. As a Healthcare name, PRLD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRLD-specific events.
PRLD 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. PRLD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRLD alongside the broader basket even when PRLD-specific fundamentals are unchanged. Short-premium structures like a iron condor on PRLD carry tail risk when realized volatility exceeds the implied move; review historical PRLD earnings reactions and macro stress periods before sizing. Always rebuild the position from current PRLD chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on PRLD?
- A iron condor on PRLD is the iron condor strategy applied to PRLD (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 PRLD stock at $5.55 on the most recent close, the strikes shown on this page are snapped to the nearest listed PRLD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PRLD 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 PRLD iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 67.70%), 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 PRLD iron condor?
- The breakeven for the PRLD iron condor priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PRLD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.41%; 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 PRLD?
- Iron condors on PRLD are a delta-neutral premium-collection structure that profits if PRLD stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current PRLD implied volatility affect this iron condor?
- PRLD ATM IV is at 67.70% with IV rank near 14.36%, 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.