SMMT Iron Condor Strategy
SMMT (Summit Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Summit Therapeutics Inc. is a biopharmaceutical firm dedicated to discovering, developing, and commercializing therapeutic solutions, primarily targeting infectious diseases across the United States and Latin America. The company's clinical development pipeline is heavily concentrated on therapies for Clostridioides difficile infection (CDI). Its flagship product candidate, ridinilazole, is an orally administered small molecule antibiotic currently advancing through Phase III clinical trials as a treatment for CDI. Beyond its lead asset, Summit Therapeutics is also progressing SMT-738, designed to combat multidrug-resistant infections, notably carbapenem-resistant Enterobacteriaceae (CRE). Additionally, its DDS-04 series represents a potential therapeutic avenue for various infections caused by the Enterobacteriaceae family of bacteria. Established in 2003, the company maintains its headquarters in Cambridge, Massachusetts.
SMMT (Summit Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $10.87B, a beta of -1.31 versus the broader market, a 52-week range of 12.55-30.98, average daily share volume of 5.2M, a public-listing history dating back to 2015, approximately 159 full-time employees. These structural characteristics shape how SMMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.31 indicates SMMT 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 SMMT?
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 SMMT snapshot
As of June 29, 2026, spot at $14.46, ATM IV 83.09%, IV rank 28.73%, expected move 23.82%. The iron condor on SMMT 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 32-day expiry.
Why this iron condor structure on SMMT specifically: SMMT IV at 83.09% is on the cheap side of its 1-year range, which means a premium-selling SMMT iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.82% (roughly $3.44 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SMMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMMT should anchor to the underlying notional of $14.46 per share and to the trader's directional view on SMMT stock.
SMMT iron condor setup
The SMMT 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 SMMT near $14.46, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMMT chain at a 32-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 SMMT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $15.00 | $1.15 |
| Buy 1 | Call | $16.00 | $0.75 |
| Sell 1 | Put | $14.00 | $1.28 |
| Buy 1 | Put | $13.00 | $0.78 |
SMMT iron condor risk and reward
- Net Premium / Debit
- +$90.00
- Max Profit (per contract)
- $90.00
- Max Loss (per contract)
- -$10.00
- Breakeven(s)
- $13.10, $15.90
- Risk / Reward Ratio
- 9.000
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.
SMMT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SMMT. 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 | -99.9% | -$10.00 |
| $3.21 | -77.8% | -$10.00 |
| $6.40 | -55.7% | -$10.00 |
| $9.60 | -33.6% | -$10.00 |
| $12.79 | -11.5% | -$10.00 |
| $15.99 | +10.6% | -$9.04 |
| $19.19 | +32.7% | -$10.00 |
| $22.38 | +54.8% | -$10.00 |
| $25.58 | +76.9% | -$10.00 |
| $28.77 | +99.0% | -$10.00 |
When traders use iron condor on SMMT
Iron condors on SMMT are a delta-neutral premium-collection structure that profits if SMMT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SMMT thesis for this iron condor
The market-implied 1-standard-deviation range for SMMT extends from approximately $11.02 on the downside to $17.90 on the upside. A SMMT iron condor is a delta-neutral premium-collection structure that pays off when SMMT 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 SMMT IV rank near 28.73% 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 SMMT at 83.09%. As a Healthcare name, SMMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMMT-specific events.
SMMT 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. SMMT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMMT alongside the broader basket even when SMMT-specific fundamentals are unchanged. Short-premium structures like a iron condor on SMMT carry tail risk when realized volatility exceeds the implied move; review historical SMMT earnings reactions and macro stress periods before sizing. Always rebuild the position from current SMMT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SMMT?
- A iron condor on SMMT is the iron condor strategy applied to SMMT (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 SMMT stock trading near $14.46, the strikes shown on this page are snapped to the nearest listed SMMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMMT 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 SMMT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 83.09%), the computed maximum profit is $90.00 per contract and the computed maximum loss is -$10.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SMMT iron condor?
- The breakeven for the SMMT iron condor priced on this page is roughly $13.10 and $15.90 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 SMMT market-implied 1-standard-deviation expected move is approximately 23.82%; 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 SMMT?
- Iron condors on SMMT are a delta-neutral premium-collection structure that profits if SMMT stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SMMT implied volatility affect this iron condor?
- SMMT ATM IV is at 83.09% with IV rank near 28.73%, 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.