RRR Iron Condor Strategy
RRR (Red Rock Resorts, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NASDAQ.
Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, develops and operates casino and entertainment properties in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company owns and operates 9 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. As of December 31, 2021, it operated approximately 13,894 slot machines, 240 table games, and 3,081 hotel rooms in the Las Vegas market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016.
RRR (Red Rock Resorts, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $3.02B, a trailing P/E of 15.95, a beta of 1.35 versus the broader market, a 52-week range of 44.28-68.99, average daily share volume of 946K, a public-listing history dating back to 2016, approximately 9K full-time employees. These structural characteristics shape how RRR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates RRR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RRR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on RRR?
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 RRR snapshot
As of May 15, 2026, spot at $51.42, ATM IV 36.00%, IV rank 41.67%, expected move 10.32%. The iron condor on RRR 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 RRR specifically: RRR IV at 36.00% is mid-range versus its 1-year history, so the credit collected on a RRR iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.32% (roughly $5.31 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 RRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on RRR should anchor to the underlying notional of $51.42 per share and to the trader's directional view on RRR stock.
RRR iron condor setup
The RRR 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 RRR near $51.42, the first option leg uses a $53.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RRR 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 RRR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $53.99 | N/A |
| Buy 1 | Call | $56.56 | N/A |
| Sell 1 | Put | $48.85 | N/A |
| Buy 1 | Put | $46.28 | N/A |
RRR 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.
RRR iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on RRR. 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 RRR
Iron condors on RRR are a delta-neutral premium-collection structure that profits if RRR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
RRR thesis for this iron condor
The market-implied 1-standard-deviation range for RRR extends from approximately $46.11 on the downside to $56.73 on the upside. A RRR iron condor is a delta-neutral premium-collection structure that pays off when RRR 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 RRR IV rank near 41.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on RRR should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RRR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RRR-specific events.
RRR 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. RRR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RRR alongside the broader basket even when RRR-specific fundamentals are unchanged. Short-premium structures like a iron condor on RRR carry tail risk when realized volatility exceeds the implied move; review historical RRR earnings reactions and macro stress periods before sizing. Always rebuild the position from current RRR chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on RRR?
- A iron condor on RRR is the iron condor strategy applied to RRR (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 RRR stock trading near $51.42, the strikes shown on this page are snapped to the nearest listed RRR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RRR 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 RRR iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), 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 RRR iron condor?
- The breakeven for the RRR 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 RRR market-implied 1-standard-deviation expected move is approximately 10.32%; 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 RRR?
- Iron condors on RRR are a delta-neutral premium-collection structure that profits if RRR stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current RRR implied volatility affect this iron condor?
- RRR ATM IV is at 36.00% with IV rank near 41.67%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.