YELP Iron Condor Strategy
YELP (Yelp Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on NYSE.
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location Ad products, as well as enables businesses to deliver targeted search advertising to local audiences; and business listing page products. The company also offers other services comprising Yelp Reservations that provide online reservations for restaurants, nightlife, and other venues directly from their Yelp business pages; Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free and paid access to content and data for consumer-facing enterprise use through publicly available APIs. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website, as well as non-advertising partner arrangements.
YELP (Yelp Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $1.26B, a trailing P/E of 9.68, a beta of 0.54 versus the broader market, a 52-week range of 19.6-41.22, average daily share volume of 1.4M, 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 0.54 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 9.68 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.
Current YELP snapshot
As of May 15, 2026, spot at $21.66, ATM IV 42.30%, IV rank 43.07%, expected move 12.13%. The iron condor on YELP 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 YELP specifically: YELP IV at 42.30% is mid-range versus its 1-year history, so the credit collected on a YELP iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.13% (roughly $2.63 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 YELP expiries trade a higher absolute premium for lower per-day decay. Position sizing on YELP should anchor to the underlying notional of $21.66 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With YELP near $21.66, the first option leg uses a $23.00 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 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 YELP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $23.00 | $0.63 |
| Buy 1 | Call | $24.00 | $0.33 |
| Sell 1 | Put | $21.00 | $0.83 |
| Buy 1 | Put | $19.00 | $0.28 |
YELP iron condor risk and reward
- Net Premium / Debit
- +$85.00
- Max Profit (per contract)
- $85.00
- Max Loss (per contract)
- -$115.00
- Breakeven(s)
- $20.15, $23.85
- Risk / Reward Ratio
- 0.739
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 |
| $4.80 | -77.8% | -$115.00 |
| $9.59 | -55.7% | -$115.00 |
| $14.37 | -33.6% | -$115.00 |
| $19.16 | -11.5% | -$98.78 |
| $23.95 | +10.6% | -$10.02 |
| $28.74 | +32.7% | -$15.00 |
| $33.53 | +54.8% | -$15.00 |
| $38.31 | +76.9% | -$15.00 |
| $43.10 | +99.0% | -$15.00 |
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 $19.03 on the downside to $24.29 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 43.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on YELP should anchor more to the directional view and the expected-move geometry. 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 trading near $21.66, the strikes shown on this page are snapped to the nearest listed YELP chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $85.00 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 roughly $20.15 and $23.85 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 YELP market-implied 1-standard-deviation expected move is approximately 12.13%; 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 42.30% with IV rank near 43.07%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.