YELP Iron Condor Strategy
YELP (Yelp Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on NYSE.
Yelp Inc. operates a digital platform facilitating connections between consumers and local enterprises, both within the U.S. and globally. Its extensive coverage spans numerous business sectors, including dining, retail, wellness, healthcare, home services, automotive, professional trades, pet care, event planning, real estate, and financial services. For businesses, Yelp provides diverse promotional tools, both complimentary and premium. These encompass pay-per-click advertising, specialized ad solutions for multi-location businesses, hyper-local targeting capabilities, and enhanced business profile features. Beyond advertising, Yelp offers several specialized services. Yelp Reservations allows users to book tables at restaurants and other venues directly through business profiles.
YELP (Yelp Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $1.30B, a trailing P/E of 10.33, a beta of 0.46 versus the broader market, a 52-week range of 19.6-34.49, average daily share volume of 1.2M, a public-listing history dating back to 2012, approximately 5K full-time employees. These structural characteristics shape how YELP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates YELP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.33 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 YELP?
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.
YELP snapshot
As of August 14, 2026, spot at $24.44, ATM IV 46.50%, IV rank 15.75%, expected move 13.33%. The iron condor on YELP 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 YELP specifically: YELP IV at 46.50% is on the cheap side of its 1-year range, which means a premium-selling YELP iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $3.26 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 YELP expiries trade a higher absolute premium for lower per-day decay. Position sizing on YELP should anchor to the underlying notional of $24.44 per share and to the trader's directional view on YELP stock.
YELP iron condor setup
The YELP 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 YELP at $24.44 on that close, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YELP 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 YELP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $26.00 | $0.78 |
| Buy 1 | Call | $27.00 | $0.73 |
| Sell 1 | Put | $23.00 | $0.75 |
| Buy 1 | Put | $22.00 | $0.95 |
YELP iron condor risk and reward
- Net Premium / Debit
- -$15.00
- Max Profit (per contract)
- -$15.00
- Max Loss (per contract)
- -$115.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.130
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.
YELP iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on YELP. 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% | -$115.00 |
| $5.41 | -77.9% | -$115.00 |
| $10.82 | -55.7% | -$115.00 |
| $16.22 | -33.6% | -$115.00 |
| $21.62 | -11.5% | -$115.00 |
| $27.02 | +10.6% | -$115.00 |
| $32.43 | +32.7% | -$115.00 |
| $37.83 | +54.8% | -$115.00 |
| $43.23 | +76.9% | -$115.00 |
| $48.63 | +99.0% | -$115.00 |
When traders use iron condor on YELP
Iron condors on YELP are a delta-neutral premium-collection structure that profits if YELP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
YELP thesis for this iron condor
The market-implied 1-standard-deviation range for YELP extends from approximately $21.18 on the downside to $27.70 on the upside. A YELP iron condor is a delta-neutral premium-collection structure that pays off when YELP 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 YELP IV rank near 15.75% 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 YELP at 46.50%. As a Communication Services name, YELP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YELP-specific events.
YELP 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. YELP positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YELP alongside the broader basket even when YELP-specific fundamentals are unchanged. Short-premium structures like a iron condor on YELP carry tail risk when realized volatility exceeds the implied move; review historical YELP earnings reactions and macro stress periods before sizing. Always rebuild the position from current YELP chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on YELP?
- A iron condor on YELP is the iron condor strategy applied to YELP (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 YELP stock at $24.44 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed YELP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are YELP 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 YELP iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.50%), the computed maximum profit is -$15.00 per contract and the computed maximum loss is -$115.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a YELP iron condor?
- The breakeven for the YELP iron condor priced on this page is no defined breakeven on the modeled curve 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 YELP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.33%; 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 YELP?
- Iron condors on YELP are a delta-neutral premium-collection structure that profits if YELP stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current YELP implied volatility affect this iron condor?
- YELP ATM IV is at 46.50% with IV rank near 15.75%, 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.