SFM Iron Condor Strategy
SFM (Sprouts Farmers Market, Inc.), in the Consumer Defensive sector, (Grocery Stores industry), listed on NASDAQ.
Sprouts Farmers Market, Inc. offers fresh, natural, and organic food products in the United States. The company offers perishable product categories, including fresh produce, meat, seafood, deli, bakery, floral and dairy, and dairy alternatives; and non-perishable product categories, such as grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care. As of January 2, 2022, it operated 374 stores in 23 states. Sprouts Farmers Market, Inc. was founded in 2002 and is headquartered in Phoenix, Arizona.
SFM (Sprouts Farmers Market, Inc.) trades in the Consumer Defensive sector, specifically Grocery Stores, with a market capitalization of approximately $8.30B, a trailing P/E of 16.50, a beta of 0.68 versus the broader market, a 52-week range of 64.75-182, average daily share volume of 2.5M, a public-listing history dating back to 2013, approximately 35K full-time employees. These structural characteristics shape how SFM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates SFM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a iron condor on SFM?
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 SFM snapshot
As of May 15, 2026, spot at $86.13, ATM IV 43.40%, IV rank 17.48%, expected move 12.44%. The iron condor on SFM 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 SFM specifically: SFM IV at 43.40% is on the cheap side of its 1-year range, which means a premium-selling SFM iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.44% (roughly $10.72 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 SFM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SFM should anchor to the underlying notional of $86.13 per share and to the trader's directional view on SFM stock.
SFM iron condor setup
The SFM 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 SFM near $86.13, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SFM 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 SFM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $90.00 | $3.20 |
| Buy 1 | Call | $95.00 | $1.78 |
| Sell 1 | Put | $80.00 | $1.95 |
| Buy 1 | Put | $80.00 | $1.95 |
SFM iron condor risk and reward
- Net Premium / Debit
- +$142.50
- Max Profit (per contract)
- $142.50
- Max Loss (per contract)
- -$357.50
- Breakeven(s)
- $91.43
- Risk / Reward Ratio
- 0.399
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.
SFM iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SFM. 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% | +$142.50 |
| $19.05 | -77.9% | +$142.50 |
| $38.10 | -55.8% | +$142.50 |
| $57.14 | -33.7% | +$142.50 |
| $76.18 | -11.6% | +$142.50 |
| $95.22 | +10.6% | -$357.50 |
| $114.27 | +32.7% | -$357.50 |
| $133.31 | +54.8% | -$357.50 |
| $152.35 | +76.9% | -$357.50 |
| $171.39 | +99.0% | -$357.50 |
When traders use iron condor on SFM
Iron condors on SFM are a delta-neutral premium-collection structure that profits if SFM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SFM thesis for this iron condor
The market-implied 1-standard-deviation range for SFM extends from approximately $75.41 on the downside to $96.85 on the upside. A SFM iron condor is a delta-neutral premium-collection structure that pays off when SFM 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 SFM IV rank near 17.48% 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 SFM at 43.40%. As a Consumer Defensive name, SFM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SFM-specific events.
SFM 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. SFM positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SFM alongside the broader basket even when SFM-specific fundamentals are unchanged. Short-premium structures like a iron condor on SFM carry tail risk when realized volatility exceeds the implied move; review historical SFM earnings reactions and macro stress periods before sizing. Always rebuild the position from current SFM chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SFM?
- A iron condor on SFM is the iron condor strategy applied to SFM (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 SFM stock trading near $86.13, the strikes shown on this page are snapped to the nearest listed SFM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SFM 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 SFM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 43.40%), the computed maximum profit is $142.50 per contract and the computed maximum loss is -$357.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SFM iron condor?
- The breakeven for the SFM iron condor priced on this page is roughly $91.43 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 SFM market-implied 1-standard-deviation expected move is approximately 12.44%; 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 SFM?
- Iron condors on SFM are a delta-neutral premium-collection structure that profits if SFM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SFM implied volatility affect this iron condor?
- SFM ATM IV is at 43.40% with IV rank near 17.48%, 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.