SLP Iron Condor Strategy
SLP (Simulations Plus, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four segments: Simulations Plus, Cognigen, DILIsym, and Lixoft. The company offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. It also provides products based on mechanistic and mathematical models, such as DILIsym, a quantitative systems pharmacology software; NAFLDsym; IPFsym; RENAsym; and MITOsym. In addition, the company provides Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as modeling and simulation products comprising MonolixSuite and PKPlus. Further, it provides population modeling and simulation contract research services; training and consulting services designed to accelerate pharmacometrics studies; and clinical-pharmacology-based consulting services in support of regulatory submissions.
SLP (Simulations Plus, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $274.2M, a beta of 1.28 versus the broader market, a 52-week range of 11.09-34.01, average daily share volume of 338K, a public-listing history dating back to 1997, approximately 243 full-time employees. These structural characteristics shape how SLP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places SLP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SLP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on SLP?
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 SLP snapshot
As of May 15, 2026, spot at $13.23, ATM IV 83.40%, IV rank 43.36%, expected move 23.91%. The iron condor on SLP 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 SLP specifically: SLP IV at 83.40% is mid-range versus its 1-year history, so the credit collected on a SLP iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 23.91% (roughly $3.16 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 SLP expiries trade a higher absolute premium for lower per-day decay. Position sizing on SLP should anchor to the underlying notional of $13.23 per share and to the trader's directional view on SLP stock.
SLP iron condor setup
The SLP 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 SLP near $13.23, the first option leg uses a $13.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SLP 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 SLP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $13.89 | N/A |
| Buy 1 | Call | $14.55 | N/A |
| Sell 1 | Put | $12.57 | N/A |
| Buy 1 | Put | $11.91 | N/A |
SLP 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.
SLP iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SLP. 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 SLP
Iron condors on SLP are a delta-neutral premium-collection structure that profits if SLP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SLP thesis for this iron condor
The market-implied 1-standard-deviation range for SLP extends from approximately $10.07 on the downside to $16.39 on the upside. A SLP iron condor is a delta-neutral premium-collection structure that pays off when SLP 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 SLP IV rank near 43.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on SLP should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SLP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SLP-specific events.
SLP 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. SLP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SLP alongside the broader basket even when SLP-specific fundamentals are unchanged. Short-premium structures like a iron condor on SLP carry tail risk when realized volatility exceeds the implied move; review historical SLP earnings reactions and macro stress periods before sizing. Always rebuild the position from current SLP chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SLP?
- A iron condor on SLP is the iron condor strategy applied to SLP (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 SLP stock trading near $13.23, the strikes shown on this page are snapped to the nearest listed SLP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SLP 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 SLP iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 83.40%), 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 SLP iron condor?
- The breakeven for the SLP 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 SLP market-implied 1-standard-deviation expected move is approximately 23.91%; 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 SLP?
- Iron condors on SLP are a delta-neutral premium-collection structure that profits if SLP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SLP implied volatility affect this iron condor?
- SLP ATM IV is at 83.40% with IV rank near 43.36%, 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.