UFI Iron Condor Strategy
UFI (Unifi, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.
Unifi, Inc., together with its subsidiaries, engages in the manufacture and sale of recycled and synthetic products in the United States, Brazil, China, and internationally. It operates in four segments: Polyester, Nylon, Brazil, and Asia. The Polyester segment offers partially oriented, textured, solution and package dyed, twisted, beamed, and draw wound yarns; and pre-consumer and post-consumer waste products, including plastic bottle flakes, polyester polymer, and staple fiber beads to other yarn manufacturers, and knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, home furnishings, automotive, industrial, and other end-use markets. The Nylon segment provides virgin or recycled textured, solution dyed, and spandex covered yarns to knitters and weavers that produce fabric primarily for the apparel, hosiery, medical markets. The Brazil segment manufactures and sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets. The Asia segment primarily sells polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets.
UFI (Unifi, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $76.4M, a beta of 0.72 versus the broader market, a 52-week range of 2.96-5.42, average daily share volume of 32K, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how UFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places UFI 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 UFI?
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 UFI snapshot
As of May 15, 2026, spot at $4.15, ATM IV 67.40%, IV rank 12.57%, expected move 19.32%. The iron condor on UFI 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 UFI specifically: UFI IV at 67.40% is on the cheap side of its 1-year range, which means a premium-selling UFI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.32% (roughly $0.80 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 UFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFI should anchor to the underlying notional of $4.15 per share and to the trader's directional view on UFI stock.
UFI iron condor setup
The UFI 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 UFI near $4.15, the first option leg uses a $4.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFI 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 UFI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $4.36 | N/A |
| Buy 1 | Call | $4.57 | N/A |
| Sell 1 | Put | $3.94 | N/A |
| Buy 1 | Put | $3.74 | N/A |
UFI 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.
UFI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on UFI. 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 UFI
Iron condors on UFI are a delta-neutral premium-collection structure that profits if UFI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
UFI thesis for this iron condor
The market-implied 1-standard-deviation range for UFI extends from approximately $3.35 on the downside to $4.95 on the upside. A UFI iron condor is a delta-neutral premium-collection structure that pays off when UFI 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 UFI IV rank near 12.57% 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 UFI at 67.40%. As a Consumer Cyclical name, UFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFI-specific events.
UFI 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. UFI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFI alongside the broader basket even when UFI-specific fundamentals are unchanged. Short-premium structures like a iron condor on UFI carry tail risk when realized volatility exceeds the implied move; review historical UFI earnings reactions and macro stress periods before sizing. Always rebuild the position from current UFI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on UFI?
- A iron condor on UFI is the iron condor strategy applied to UFI (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 UFI stock trading near $4.15, the strikes shown on this page are snapped to the nearest listed UFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UFI 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 UFI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), 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 UFI iron condor?
- The breakeven for the UFI 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 UFI market-implied 1-standard-deviation expected move is approximately 19.32%; 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 UFI?
- Iron condors on UFI are a delta-neutral premium-collection structure that profits if UFI stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current UFI implied volatility affect this iron condor?
- UFI ATM IV is at 67.40% with IV rank near 12.57%, 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.