SMTC Iron Condor Strategy
SMTC (Semtech Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor products and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company also offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and wireless and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products used in industrial and consumer applications. In addition, it provides power products consisting of switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging that control, alter, regulate, and condition the power within electronic systems. The company serves original equipment manufacturers and their suppliers in the enterprise computing, communications, and consumer and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in North America, Europe, Asia- Pacific, and internationally.
SMTC (Semtech Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $13.01B, a beta of 2.22 versus the broader market, a 52-week range of 34.59-143.34, average daily share volume of 2.3M, a public-listing history dating back to 1980, approximately 2K full-time employees. These structural characteristics shape how SMTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.22 indicates SMTC 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 SMTC?
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 SMTC snapshot
As of May 15, 2026, spot at $138.65, ATM IV 103.10%, IV rank 79.62%, expected move 29.56%. The iron condor on SMTC 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 SMTC specifically: SMTC IV at 103.10% is rich versus its 1-year range, which favors premium-selling structures like a SMTC iron condor, with a market-implied 1-standard-deviation move of approximately 29.56% (roughly $40.98 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 SMTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMTC should anchor to the underlying notional of $138.65 per share and to the trader's directional view on SMTC stock.
SMTC iron condor setup
The SMTC 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 SMTC near $138.65, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMTC 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 SMTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $145.00 | $15.20 |
| Buy 1 | Call | $155.00 | $11.85 |
| Sell 1 | Put | $130.00 | $12.35 |
| Buy 1 | Put | $125.00 | $10.15 |
SMTC iron condor risk and reward
- Net Premium / Debit
- +$555.00
- Max Profit (per contract)
- $555.00
- Max Loss (per contract)
- -$445.00
- Breakeven(s)
- $150.55
- Risk / Reward Ratio
- 1.247
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.
SMTC iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on SMTC. 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% | +$55.00 |
| $30.67 | -77.9% | +$55.00 |
| $61.32 | -55.8% | +$55.00 |
| $91.98 | -33.7% | +$55.00 |
| $122.63 | -11.6% | +$55.00 |
| $153.29 | +10.6% | -$273.59 |
| $183.94 | +32.7% | -$445.00 |
| $214.60 | +54.8% | -$445.00 |
| $245.25 | +76.9% | -$445.00 |
| $275.91 | +99.0% | -$445.00 |
When traders use iron condor on SMTC
Iron condors on SMTC are a delta-neutral premium-collection structure that profits if SMTC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
SMTC thesis for this iron condor
The market-implied 1-standard-deviation range for SMTC extends from approximately $97.67 on the downside to $179.63 on the upside. A SMTC iron condor is a delta-neutral premium-collection structure that pays off when SMTC 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 SMTC IV rank near 79.62% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SMTC at 103.10%. As a Technology name, SMTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMTC-specific events.
SMTC 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. SMTC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMTC alongside the broader basket even when SMTC-specific fundamentals are unchanged. Short-premium structures like a iron condor on SMTC carry tail risk when realized volatility exceeds the implied move; review historical SMTC earnings reactions and macro stress periods before sizing. Always rebuild the position from current SMTC chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on SMTC?
- A iron condor on SMTC is the iron condor strategy applied to SMTC (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 SMTC stock trading near $138.65, the strikes shown on this page are snapped to the nearest listed SMTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMTC 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 SMTC iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 103.10%), the computed maximum profit is $555.00 per contract and the computed maximum loss is -$445.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SMTC iron condor?
- The breakeven for the SMTC iron condor priced on this page is roughly $150.55 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 SMTC market-implied 1-standard-deviation expected move is approximately 29.56%; 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 SMTC?
- Iron condors on SMTC are a delta-neutral premium-collection structure that profits if SMTC stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current SMTC implied volatility affect this iron condor?
- SMTC ATM IV is at 103.10% with IV rank near 79.62%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.