AMZN Iron Condor — Sep 18, 2026
Trade Setup
Current Stock Price
$271.58
Entry Price
$452.50
Target Price
$226.25
Stop Loss
$905.00
Expiration
Sep 18, 2026
Suggested Contracts
1
Strike Details
Sell 255P / Buy 245P / Sell 290C / Buy 300C
Risk / Reward
Max Loss
$547.50
Max Profit
$452.50
Analysis
AMZN (Amazon.com, Inc. - Common Stock) presents a iron condor opportunity with moderately elevated implied volatility. IV Rank 25. IV 3842.0% trades 1511.0pp above 30-day HV (2331.0%). This setup favors net premium sellers.
Sell the $255 put and the $290 call (both ~15-30 delta), each protected by a long wing. The position profits if AMZN closes between the breakevens at expiration. Underlying ~$271.58, 49 DTE. Max profit $453 per contract, max loss $548, 82.7% return on risk, 50% POP. Breakevens at $250.47 and $294.52.
Management: take profit at ~50% of max profit ($226). Cut at 2x credit ($905 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: AMZN @ ~$271.58 Expiration: Sep 18, 2026 (49 DTE) Net credit (entry): ~$452.50 per spread Legs:
- Sell AMZN Sep 18, 2026 $255 Put (delta -0.28, mid $5.38)
- Buy AMZN Sep 18, 2026 $245 Put (delta -0.19, mid $3.15)
- Sell AMZN Sep 18, 2026 $290 Call (delta 0.30, mid $5.97)
- Buy AMZN Sep 18, 2026 $300 Call (delta 0.20, mid $3.67)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~6.2% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($226). Cut loss if position reaches 2x credit received ($905 loss). Roll if tested with > 14 DTE remaining.