How are YUM 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 YUM iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.30%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$775.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a YUM iron condor?

The breakeven for the YUM iron condor priced on this page is roughly $137.75 and $157.25 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 YUM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current YUM implied volatility affect this iron condor?

YUM ATM IV is at 23.30% with IV rank near 35.31%, 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.

YUM Iron Condor Strategy

YUM (Yum! Brands, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.

YUM! Brands, Inc. (YUM) is a leading global quick-service restaurant enterprise that focuses on the creation, management, and franchising of its restaurant concepts internationally. Its business is organized into four main divisions: KFC, Taco Bell, Pizza Hut, and The Habit Burger Grill. The company operates establishments under these well-known brands, offering diverse food categories such as chicken, pizza, Mexican-style dishes, and made-to-order chargrilled burgers and sandwiches, among other food products. As of December 31, 2021, YUM! Brands boasted a significant worldwide presence, comprising 26,934 KFC outlets, 18,381 Pizza Hut locations, 7,791 Taco Bell restaurants, and 318 The Habit Burger Grill units, spread across roughly 157 countries and territories.

YUM (Yum! Brands, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $41.45B, a trailing P/E of 18.79, a beta of 0.55 versus the broader market, a 52-week range of 137.33-170.14, average daily share volume of 2.2M, a public-listing history dating back to 1997, approximately 49K full-time employees. These structural characteristics shape how YUM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.55 indicates YUM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. YUM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a iron condor on YUM?

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.

YUM snapshot

As of August 14, 2026, spot at $149.06, ATM IV 23.30%, IV rank 35.31%, expected move 6.68%. The iron condor on YUM 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 YUM specifically: YUM IV at 23.30% is mid-range versus its 1-year history, so the credit collected on a YUM iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.68% (roughly $9.96 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 YUM expiries trade a higher absolute premium for lower per-day decay. Position sizing on YUM should anchor to the underlying notional of $149.06 per share and to the trader's directional view on YUM stock.

YUM iron condor setup

The YUM 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 YUM at $149.06 on that close, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YUM 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 YUM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Call	$155.00	$1.93
Buy 1	Call	$165.00	$0.45
Sell 1	Put	$140.00	$1.35
Buy 1	Put	$135.00	$0.58

YUM iron condor risk and reward

Net Premium / Debit: +$225.00
Max Profit (per contract): $225.00
Max Loss (per contract): -$775.00
Breakeven(s): $137.75, $157.25
Risk / Reward Ratio: 0.290

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.

YUM iron condor payoff curve

Modeled P&L at expiration across a range of underlying prices for the iron condor on YUM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$275.00
$32.97	-77.9%	-$275.00
$65.92	-55.8%	-$275.00
$98.88	-33.7%	-$275.00
$131.84	-11.6%	-$275.00
$164.79	+10.6%	-$754.44
$197.75	+32.7%	-$775.00
$230.71	+54.8%	-$775.00
$263.67	+76.9%	-$775.00
$296.62	+99.0%	-$775.00

When traders use iron condor on YUM

Iron condors on YUM are a delta-neutral premium-collection structure that profits if YUM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.

YUM thesis for this iron condor

The market-implied 1-standard-deviation range for YUM extends from approximately $139.10 on the downside to $159.02 on the upside. A YUM iron condor is a delta-neutral premium-collection structure that pays off when YUM 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 YUM IV rank near 35.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on YUM should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, YUM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YUM-specific events.

YUM 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. YUM positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YUM alongside the broader basket even when YUM-specific fundamentals are unchanged. Short-premium structures like a iron condor on YUM carry tail risk when realized volatility exceeds the implied move; review historical YUM earnings reactions and macro stress periods before sizing. Always rebuild the position from current YUM chain quotes before placing a trade.

Frequently asked questions

What is a iron condor on YUM?: A iron condor on YUM is the iron condor strategy applied to YUM (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 YUM stock at $149.06 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed YUM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are YUM 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 YUM iron condor priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.30%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$775.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a YUM iron condor?: The breakeven for the YUM iron condor priced on this page is roughly $137.75 and $157.25 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 YUM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.68%; 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 YUM?: Iron condors on YUM are a delta-neutral premium-collection structure that profits if YUM stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
How does current YUM implied volatility affect this iron condor?: YUM ATM IV is at 23.30% with IV rank near 35.31%, 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.