ZTS Iron Condor Strategy
ZTS (Zoetis Inc.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NYSE.
Zoetis Inc. stands as a global leader in animal health, focusing on the research, development, manufacturing, and commercialization of veterinary pharmaceuticals, vaccines, and diagnostic tools. Its comprehensive portfolio serves a broad spectrum of species, encompassing both livestock, including cattle, swine, poultry, fish, and sheep, and beloved companion animals such as dogs, cats, and horses. Among its pharmaceutical offerings are various therapeutic agents. This includes vaccines, vital for preventing respiratory, gastrointestinal, and reproductive diseases by stimulating a targeted immune response; anti-infectives that combat or inhibit the proliferation of bacterial, fungal, or protozoal pathogens; and parasiticides aimed at eradicating both internal and external pests such as fleas, ticks, and various worms. Additional pharmaceuticals address areas such as pain management and sedation, anti-emesis, reproductive health, and oncology. The portfolio also features dermatological solutions for allergic skin conditions and atopic dermatitis, alongside medicated feed additives specifically designed for livestock.
ZTS (Zoetis Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $31.88B, a trailing P/E of 12.15, a beta of 0.74 versus the broader market, a 52-week range of 72.38-161.77, average daily share volume of 6.4M, a public-listing history dating back to 2013, approximately 14K full-time employees. These structural characteristics shape how ZTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places ZTS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ZTS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on ZTS?
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 ZTS snapshot
As of June 29, 2026, spot at $73.40, ATM IV 34.60%, IV rank 23.76%, expected move 9.92%. The iron condor on ZTS 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 18-day expiry.
Why this iron condor structure on ZTS specifically: ZTS IV at 34.60% is on the cheap side of its 1-year range, which means a premium-selling ZTS iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.92% (roughly $7.28 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ZTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZTS should anchor to the underlying notional of $73.40 per share and to the trader's directional view on ZTS stock.
ZTS iron condor setup
The ZTS 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 ZTS near $73.40, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZTS chain at a 18-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 ZTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $75.00 | $1.63 |
| Buy 1 | Call | $80.00 | $0.48 |
| Sell 1 | Put | $70.00 | $0.83 |
| Buy 1 | Put | $65.00 | $0.15 |
ZTS iron condor risk and reward
- Net Premium / Debit
- +$182.50
- Max Profit (per contract)
- $182.50
- Max Loss (per contract)
- -$317.50
- Breakeven(s)
- $68.18, $76.83
- Risk / Reward Ratio
- 0.575
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.
ZTS iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on ZTS. 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% | -$317.50 |
| $16.24 | -77.9% | -$317.50 |
| $32.47 | -55.8% | -$317.50 |
| $48.69 | -33.7% | -$317.50 |
| $64.92 | -11.6% | -$317.50 |
| $81.15 | +10.6% | -$317.50 |
| $97.38 | +32.7% | -$317.50 |
| $113.61 | +54.8% | -$317.50 |
| $129.83 | +76.9% | -$317.50 |
| $146.06 | +99.0% | -$317.50 |
When traders use iron condor on ZTS
Iron condors on ZTS are a delta-neutral premium-collection structure that profits if ZTS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
ZTS thesis for this iron condor
The market-implied 1-standard-deviation range for ZTS extends from approximately $66.12 on the downside to $80.68 on the upside. A ZTS iron condor is a delta-neutral premium-collection structure that pays off when ZTS 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 ZTS IV rank near 23.76% 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 ZTS at 34.60%. As a Healthcare name, ZTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZTS-specific events.
ZTS 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. ZTS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ZTS alongside the broader basket even when ZTS-specific fundamentals are unchanged. Short-premium structures like a iron condor on ZTS carry tail risk when realized volatility exceeds the implied move; review historical ZTS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ZTS chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on ZTS?
- A iron condor on ZTS is the iron condor strategy applied to ZTS (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 ZTS stock trading near $73.40, the strikes shown on this page are snapped to the nearest listed ZTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ZTS 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 ZTS iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 34.60%), the computed maximum profit is $182.50 per contract and the computed maximum loss is -$317.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ZTS iron condor?
- The breakeven for the ZTS iron condor priced on this page is roughly $68.18 and $76.83 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 ZTS market-implied 1-standard-deviation expected move is approximately 9.92%; 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 ZTS?
- Iron condors on ZTS are a delta-neutral premium-collection structure that profits if ZTS stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current ZTS implied volatility affect this iron condor?
- ZTS ATM IV is at 34.60% with IV rank near 23.76%, 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.