UBS Iron Condor Strategy
UBS (UBS Group AG), in the Financial Services sector, (Banks - Diversified industry), listed on NYSE.
UBS Group AG, a financial services giant headquartered in Zurich, Switzerland, since its founding in 1862 (and known as UBS AG until its name change in December 2014), delivers a comprehensive range of financial advice and solutions to a global clientele of private individuals, institutions, and corporations. The firm structures its operations across four primary business segments: The Global Wealth Management division caters specifically to affluent and ultra-high-net-worth clients. It provides sophisticated investment guidance, various lending products, including mortgages and securities-based loans, and extensive planning services encompassing estate and wealth management, philanthropy, corporate and banking services, and family advisory. Through its Personal & Corporate Banking arm, UBS supports individual clients with essential banking services like deposits, cards, and digital platforms, alongside financing, investment opportunities, and retirement solutions. For corporate and institutional clients, this division furnishes a wide array of solutions, spanning equity and debt capital market activities, syndicated and structured credit facilities, private placements, leasing, traditional financing, international trade and export finance, global custody, and transactional banking for payments and liquidity management. The Asset Management division specializes in a broad spectrum of investment strategies, encompassing equities, fixed income, hedge funds, real estate, and private market assets.
UBS (UBS Group AG) trades in the Financial Services sector, specifically Banks - Diversified, with a market capitalization of approximately $176.77B, a trailing P/E of 17.88, a beta of 0.83 versus the broader market, a 52-week range of 36.295-55.15, average daily share volume of 2.2M, a public-listing history dating back to 2000, approximately 103K full-time employees. These structural characteristics shape how UBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places UBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on UBS?
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.
UBS snapshot
As of August 14, 2026, spot at $53.58, ATM IV 24.80%, IV rank 16.84%, expected move 7.11%. The iron condor on UBS 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 154-day expiry.
Why this iron condor structure on UBS specifically: UBS IV at 24.80% is on the cheap side of its 1-year range, which means a premium-selling UBS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $3.81 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBS should anchor to the underlying notional of $53.58 per share and to the trader's directional view on UBS stock.
UBS iron condor setup
The UBS 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 UBS at $53.58 on that close, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBS chain at a 154-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 UBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $57.50 | $2.50 |
| Buy 1 | Call | $60.00 | $1.70 |
| Sell 1 | Put | $50.00 | $2.00 |
| Buy 1 | Put | $47.50 | $1.33 |
UBS iron condor risk and reward
- Net Premium / Debit
- +$147.50
- Max Profit (per contract)
- $147.50
- Max Loss (per contract)
- -$102.50
- Breakeven(s)
- $48.53, $58.98
- Risk / Reward Ratio
- 1.439
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.
UBS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on UBS. 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% | -$102.50 |
| $11.86 | -77.9% | -$102.50 |
| $23.70 | -55.8% | -$102.50 |
| $35.55 | -33.7% | -$102.50 |
| $47.39 | -11.5% | -$102.50 |
| $59.24 | +10.6% | -$26.36 |
| $71.08 | +32.7% | -$102.50 |
| $82.93 | +54.8% | -$102.50 |
| $94.78 | +76.9% | -$102.50 |
| $106.62 | +99.0% | -$102.50 |
When traders use iron condor on UBS
Iron condors on UBS are a delta-neutral premium-collection structure that profits if UBS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
UBS thesis for this iron condor
The market-implied 1-standard-deviation range for UBS extends from approximately $49.77 on the downside to $57.39 on the upside. A UBS iron condor is a delta-neutral premium-collection structure that pays off when UBS 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 UBS IV rank near 16.84% 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 UBS at 24.80%. As a Financial Services name, UBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBS-specific events.
UBS 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. UBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBS alongside the broader basket even when UBS-specific fundamentals are unchanged. Short-premium structures like a iron condor on UBS carry tail risk when realized volatility exceeds the implied move; review historical UBS earnings reactions and macro stress periods before sizing. Always rebuild the position from current UBS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on UBS?
- A iron condor on UBS is the iron condor strategy applied to UBS (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 UBS stock at $53.58 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UBS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UBS 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 UBS iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.80%), the computed maximum profit is $147.50 per contract and the computed maximum loss is -$102.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBS iron condor?
- The breakeven for the UBS iron condor priced on this page is roughly $48.53 and $58.98 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 UBS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.11%; 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 UBS?
- Iron condors on UBS are a delta-neutral premium-collection structure that profits if UBS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current UBS implied volatility affect this iron condor?
- UBS ATM IV is at 24.80% with IV rank near 16.84%, 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.