STX Iron Condor Strategy
STX (Seagate Technology Holdings plc), in the Technology sector, (Computer Hardware industry), listed on NASDAQ.
Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.
STX (Seagate Technology Holdings plc) trades in the Technology sector, specifically Computer Hardware, with a market capitalization of approximately $183.27B, a trailing P/E of 75.96, a beta of 2.01 versus the broader market, a 52-week range of 103.73-841.31, average daily share volume of 4.0M, a public-listing history dating back to 2002, approximately 30K full-time employees. These structural characteristics shape how STX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.01 indicates STX 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 75.96 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. STX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on STX?
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 STX snapshot
As of May 15, 2026, spot at $797.78, ATM IV 79.91%, IV rank 87.83%, expected move 22.91%. The iron condor on STX 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 28-day expiry.
Why this iron condor structure on STX specifically: STX IV at 79.91% is rich versus its 1-year range, which favors premium-selling structures like a STX iron condor, with a market-implied 1-standard-deviation move of approximately 22.91% (roughly $182.78 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STX expiries trade a higher absolute premium for lower per-day decay. Position sizing on STX should anchor to the underlying notional of $797.78 per share and to the trader's directional view on STX stock.
STX iron condor setup
The STX 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 STX near $797.78, the first option leg uses a $840.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STX chain at a 28-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 STX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $840.00 | $54.45 |
| Buy 1 | Call | $880.00 | $38.10 |
| Sell 1 | Put | $760.00 | $50.10 |
| Buy 1 | Put | $720.00 | $35.80 |
STX iron condor risk and reward
- Net Premium / Debit
- +$3,065.00
- Max Profit (per contract)
- $3,065.00
- Max Loss (per contract)
- -$935.00
- Breakeven(s)
- $729.35, $870.65
- Risk / Reward Ratio
- 3.278
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.
STX iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on STX. 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% | -$935.00 |
| $176.40 | -77.9% | -$935.00 |
| $352.79 | -55.8% | -$935.00 |
| $529.19 | -33.7% | -$935.00 |
| $705.58 | -11.6% | -$935.00 |
| $881.97 | +10.6% | -$935.00 |
| $1,058.36 | +32.7% | -$935.00 |
| $1,234.76 | +54.8% | -$935.00 |
| $1,411.15 | +76.9% | -$935.00 |
| $1,587.54 | +99.0% | -$935.00 |
When traders use iron condor on STX
Iron condors on STX are a delta-neutral premium-collection structure that profits if STX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
STX thesis for this iron condor
The market-implied 1-standard-deviation range for STX extends from approximately $615.00 on the downside to $980.56 on the upside. A STX iron condor is a delta-neutral premium-collection structure that pays off when STX 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 STX IV rank near 87.83% 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 STX at 79.91%. As a Technology name, STX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STX-specific events.
STX 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. STX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STX alongside the broader basket even when STX-specific fundamentals are unchanged. Short-premium structures like a iron condor on STX carry tail risk when realized volatility exceeds the implied move; review historical STX earnings reactions and macro stress periods before sizing. Always rebuild the position from current STX chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on STX?
- A iron condor on STX is the iron condor strategy applied to STX (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 STX stock trading near $797.78, the strikes shown on this page are snapped to the nearest listed STX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STX 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 STX iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 79.91%), the computed maximum profit is $3,065.00 per contract and the computed maximum loss is -$935.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a STX iron condor?
- The breakeven for the STX iron condor priced on this page is roughly $729.35 and $870.65 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 STX market-implied 1-standard-deviation expected move is approximately 22.91%; 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 STX?
- Iron condors on STX are a delta-neutral premium-collection structure that profits if STX stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current STX implied volatility affect this iron condor?
- STX ATM IV is at 79.91% with IV rank near 87.83%, 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.