TRVI Iron Condor Strategy
TRVI (Trevi Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Trevi Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on the advancement and commercialization of Haduvio, a potential treatment for debilitating neurologically mediated conditions. This orally administered, extended-release formulation of nalbuphine is currently undergoing Phase IIb/III clinical trials for chronic pruritus (severe itching) and persistent cough experienced by patients with idiopathic pulmonary fibrosis. Trevi Therapeutics also possesses a licensing agreement with Endo Pharmaceuticals Inc., granting it the rights to develop and market products containing nalbuphine hydrochloride in various formulations. Established in 2011, the company maintains its corporate headquarters in New Haven, Connecticut.
TRVI (Trevi Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.52B, a beta of 1.07 versus the broader market, a 52-week range of 6.93-20.22, average daily share volume of 2.0M, a public-listing history dating back to 2019, approximately 34 full-time employees. These structural characteristics shape how TRVI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places TRVI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a iron condor on TRVI?
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.
TRVI snapshot
As of August 14, 2026, spot at $18.37, ATM IV 42.20%, IV rank 1.98%, expected move 12.10%. The iron condor on TRVI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this iron condor structure on TRVI specifically: TRVI IV at 42.20% is on the cheap side of its 1-year range, which means a premium-selling TRVI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.10% (roughly $2.22 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TRVI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRVI should anchor to the underlying notional of $18.37 per share and to the trader's directional view on TRVI stock.
TRVI iron condor setup
The TRVI iron condor below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TRVI at $18.37 on that close, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRVI chain at a 35-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 TRVI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $19.00 | $0.75 |
| Buy 1 | Call | $20.00 | $0.45 |
| Sell 1 | Put | $17.00 | $0.38 |
| Buy 1 | Put | $17.00 | $0.38 |
TRVI iron condor risk and reward
- Net Premium / Debit
- +$30.00
- Max Profit (per contract)
- $30.00
- Max Loss (per contract)
- -$70.00
- Breakeven(s)
- $19.30
- Risk / Reward Ratio
- 0.429
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.
TRVI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on TRVI. 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% | +$30.00 |
| $4.07 | -77.8% | +$30.00 |
| $8.13 | -55.7% | +$30.00 |
| $12.19 | -33.6% | +$30.00 |
| $16.25 | -11.5% | +$30.00 |
| $20.31 | +10.6% | -$70.00 |
| $24.37 | +32.7% | -$70.00 |
| $28.43 | +54.8% | -$70.00 |
| $32.49 | +76.9% | -$70.00 |
| $36.56 | +99.0% | -$70.00 |
When traders use iron condor on TRVI
Iron condors on TRVI are a delta-neutral premium-collection structure that profits if TRVI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
TRVI thesis for this iron condor
The market-implied 1-standard-deviation range for TRVI extends from approximately $16.15 on the downside to $20.59 on the upside. A TRVI iron condor is a delta-neutral premium-collection structure that pays off when TRVI 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 TRVI IV rank near 1.98% 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 TRVI at 42.20%. As a Healthcare name, TRVI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRVI-specific events.
TRVI 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. TRVI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TRVI alongside the broader basket even when TRVI-specific fundamentals are unchanged. Short-premium structures like a iron condor on TRVI carry tail risk when realized volatility exceeds the implied move; review historical TRVI earnings reactions and macro stress periods before sizing. Always rebuild the position from current TRVI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on TRVI?
- A iron condor on TRVI is the iron condor strategy applied to TRVI (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 TRVI stock at $18.37 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TRVI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TRVI 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 TRVI iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $30.00 per contract and the computed maximum loss is -$70.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TRVI iron condor?
- The breakeven for the TRVI iron condor priced on this page is roughly $19.30 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TRVI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.10%; 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 TRVI?
- Iron condors on TRVI are a delta-neutral premium-collection structure that profits if TRVI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current TRVI implied volatility affect this iron condor?
- TRVI ATM IV is at 42.20% with IV rank near 1.98%, 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.