RVMD Iron Condor Strategy
RVMD (Revolution Medicines, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630.
RVMD (Revolution Medicines, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $31.88B, a beta of 1.41 versus the broader market, a 52-week range of 34-155.7, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 616 full-time employees. These structural characteristics shape how RVMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates RVMD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a iron condor on RVMD?
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 RVMD snapshot
As of May 15, 2026, spot at $145.12, ATM IV 63.90%, IV rank 31.69%, expected move 18.32%. The iron condor on RVMD 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 RVMD specifically: RVMD IV at 63.90% is mid-range versus its 1-year history, so the credit collected on a RVMD iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.32% (roughly $26.59 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 RVMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RVMD should anchor to the underlying notional of $145.12 per share and to the trader's directional view on RVMD stock.
RVMD iron condor setup
The RVMD 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 RVMD near $145.12, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RVMD 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 RVMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $150.00 | $9.85 |
| Buy 1 | Call | $160.00 | $5.80 |
| Sell 1 | Put | $140.00 | $8.65 |
| Buy 1 | Put | $130.00 | $5.75 |
RVMD iron condor risk and reward
- Net Premium / Debit
- +$695.00
- Max Profit (per contract)
- $695.00
- Max Loss (per contract)
- -$305.00
- Breakeven(s)
- $133.05, $156.95
- Risk / Reward Ratio
- 2.279
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.
RVMD iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on RVMD. 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% | -$305.00 |
| $32.10 | -77.9% | -$305.00 |
| $64.18 | -55.8% | -$305.00 |
| $96.27 | -33.7% | -$305.00 |
| $128.35 | -11.6% | -$305.00 |
| $160.44 | +10.6% | -$305.00 |
| $192.52 | +32.7% | -$305.00 |
| $224.61 | +54.8% | -$305.00 |
| $256.70 | +76.9% | -$305.00 |
| $288.78 | +99.0% | -$305.00 |
When traders use iron condor on RVMD
Iron condors on RVMD are a delta-neutral premium-collection structure that profits if RVMD stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
RVMD thesis for this iron condor
The market-implied 1-standard-deviation range for RVMD extends from approximately $118.53 on the downside to $171.71 on the upside. A RVMD iron condor is a delta-neutral premium-collection structure that pays off when RVMD 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 RVMD IV rank near 31.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on RVMD should anchor more to the directional view and the expected-move geometry. As a Healthcare name, RVMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RVMD-specific events.
RVMD 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. RVMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RVMD alongside the broader basket even when RVMD-specific fundamentals are unchanged. Short-premium structures like a iron condor on RVMD carry tail risk when realized volatility exceeds the implied move; review historical RVMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current RVMD chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on RVMD?
- A iron condor on RVMD is the iron condor strategy applied to RVMD (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 RVMD stock trading near $145.12, the strikes shown on this page are snapped to the nearest listed RVMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RVMD 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 RVMD iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 63.90%), the computed maximum profit is $695.00 per contract and the computed maximum loss is -$305.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RVMD iron condor?
- The breakeven for the RVMD iron condor priced on this page is roughly $133.05 and $156.95 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 RVMD market-implied 1-standard-deviation expected move is approximately 18.32%; 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 RVMD?
- Iron condors on RVMD are a delta-neutral premium-collection structure that profits if RVMD stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current RVMD implied volatility affect this iron condor?
- RVMD ATM IV is at 63.90% with IV rank near 31.69%, 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.