STEM Iron Condor Strategy
STEM (Stem, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. It offers energy storage systems sourced from original equipment manufacturers (OEMs). The company also provides Athena, an artificial intelligence platform, which offers battery hardware and software-enabled services to operate the energy storage systems. In addition, it offers system design and engineering services, supply chain management, energy storage value stream optimization, warranty and preventive maintenance plan management, operation and maintenance reporting, and program enrollment and incentive management services. The company serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. Stem, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
STEM (Stem, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $80.5M, a trailing P/E of 0.53, a beta of 1.52 versus the broader market, a 52-week range of 5.925-32.23, average daily share volume of 160K, a public-listing history dating back to 2020, approximately 569 full-time employees. These structural characteristics shape how STEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.52 indicates STEM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 0.53 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a iron condor on STEM?
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 STEM snapshot
As of May 15, 2026, spot at $8.72, ATM IV 116.90%, IV rank 18.64%, expected move 33.51%. The iron condor on STEM 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 STEM specifically: STEM IV at 116.90% is on the cheap side of its 1-year range, which means a premium-selling STEM iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 33.51% (roughly $2.92 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 STEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on STEM should anchor to the underlying notional of $8.72 per share and to the trader's directional view on STEM stock.
STEM iron condor setup
The STEM 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 STEM near $8.72, the first option leg uses a $9.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STEM 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 STEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $9.16 | N/A |
| Buy 1 | Call | $9.59 | N/A |
| Sell 1 | Put | $8.28 | N/A |
| Buy 1 | Put | $7.85 | N/A |
STEM 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.
STEM iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on STEM. 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 STEM
Iron condors on STEM are a delta-neutral premium-collection structure that profits if STEM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
STEM thesis for this iron condor
The market-implied 1-standard-deviation range for STEM extends from approximately $5.80 on the downside to $11.64 on the upside. A STEM iron condor is a delta-neutral premium-collection structure that pays off when STEM 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 STEM IV rank near 18.64% 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 STEM at 116.90%. As a Technology name, STEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STEM-specific events.
STEM 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. STEM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STEM alongside the broader basket even when STEM-specific fundamentals are unchanged. Short-premium structures like a iron condor on STEM carry tail risk when realized volatility exceeds the implied move; review historical STEM earnings reactions and macro stress periods before sizing. Always rebuild the position from current STEM chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on STEM?
- A iron condor on STEM is the iron condor strategy applied to STEM (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 STEM stock trading near $8.72, the strikes shown on this page are snapped to the nearest listed STEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STEM 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 STEM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 116.90%), 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 STEM iron condor?
- The breakeven for the STEM 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 STEM market-implied 1-standard-deviation expected move is approximately 33.51%; 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 STEM?
- Iron condors on STEM are a delta-neutral premium-collection structure that profits if STEM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current STEM implied volatility affect this iron condor?
- STEM ATM IV is at 116.90% with IV rank near 18.64%, 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.