SFNC Iron Condor Strategy
SFNC (Simmons First National Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Simmons First National Corporation serves as the parent organization for Simmons Bank, delivering a broad spectrum of banking and financial solutions to both individual and business clients. Its offerings include various deposit accounts such as checking, savings, and time deposits. The bank also provides a diverse array of lending options, including consumer, real estate, and commercial loans, alongside specialized financing for agriculture, equipment, and small businesses via SBA initiatives. Beyond core banking, it furnishes trust and fiduciary services, credit cards, investment management, insurance products, and securities and investment services. Customers can also access modern conveniences like ATM services, online and mobile banking platforms, overdraft facilities, and safe deposit boxes. Established in 1903 and headquartered in Pine Bluff, Arkansas, the company operated a network of 199 branches across Arkansas, Missouri, Tennessee, Texas, Oklahoma, and Kansas as of January 27, 2022.
SFNC (Simmons First National Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.33B, a beta of 0.93 versus the broader market, a 52-week range of 17-23.12, average daily share volume of 1.3M, a public-listing history dating back to 1985, approximately 3K full-time employees. These structural characteristics shape how SFNC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places SFNC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SFNC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on SFNC?
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 SFNC snapshot
As of June 29, 2026, spot at $22.62, ATM IV 27.50%, IV rank 4.21%, expected move 7.88%. The iron condor on SFNC 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 SFNC specifically: SFNC IV at 27.50% is on the cheap side of its 1-year range, which means a premium-selling SFNC iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.88% (roughly $1.78 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 SFNC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SFNC should anchor to the underlying notional of $22.62 per share and to the trader's directional view on SFNC stock.
SFNC iron condor setup
The SFNC 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 SFNC near $22.62, the first option leg uses a $23.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SFNC 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 SFNC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $23.75 | N/A |
| Buy 1 | Call | $24.88 | N/A |
| Sell 1 | Put | $21.49 | N/A |
| Buy 1 | Put | $20.36 | N/A |
SFNC 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.
SFNC iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SFNC. 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 SFNC
Iron condors on SFNC are a delta-neutral premium-collection structure that profits if SFNC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SFNC thesis for this iron condor
The market-implied 1-standard-deviation range for SFNC extends from approximately $20.84 on the downside to $24.40 on the upside. A SFNC iron condor is a delta-neutral premium-collection structure that pays off when SFNC 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 SFNC IV rank near 4.21% 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 SFNC at 27.50%. As a Financial Services name, SFNC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SFNC-specific events.
SFNC 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. SFNC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SFNC alongside the broader basket even when SFNC-specific fundamentals are unchanged. Short-premium structures like a iron condor on SFNC carry tail risk when realized volatility exceeds the implied move; review historical SFNC earnings reactions and macro stress periods before sizing. Always rebuild the position from current SFNC chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SFNC?
- A iron condor on SFNC is the iron condor strategy applied to SFNC (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 SFNC stock trading near $22.62, the strikes shown on this page are snapped to the nearest listed SFNC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SFNC 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 SFNC iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 27.50%), 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 SFNC iron condor?
- The breakeven for the SFNC 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 SFNC market-implied 1-standard-deviation expected move is approximately 7.88%; 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 SFNC?
- Iron condors on SFNC are a delta-neutral premium-collection structure that profits if SFNC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SFNC implied volatility affect this iron condor?
- SFNC ATM IV is at 27.50% with IV rank near 4.21%, 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.