COIN iron condor, priced on the real chain

Four legs, one idea: you are selling the market's estimate of how far COIN can travel. The short strikes ($120 / $185) define the range you're renting out; the long wings ($115 / $190) cap what a violent move can cost you.

Both spreads cannot lose. COIN finishes on one side of the market, so at most one vertical goes in the money — which is why max loss is the width of ONE spread minus the credit, $378, not double it. Max profit is the $122 credit, earned by doing nothing.

Breakevens land at $118.78 and $186.22. Outside that band the position loses; between it, it wins. That band is 46.1% wide relative to spot, against 73% implied vol over 27 days.

Return on risk is $122 against $378 — roughly 32% if it works. You need a high hit rate to justify that ratio, which is exactly what the 73% probability is telling you.

The risk shape is a plateau with two cliffs. Anywhere between $118.78 and $186.22 you make money; past the long wings you lose a fixed $378. Between short and long strike the P/L slides linearly — that is where most condors are actually managed, not at expiry.

The killer is a trend, not a spike. A slow grind through the short call over three weeks costs the same as a gap and gives you more chances to talk yourself out of closing.

Early assignment is an operational risk rather than a market one: it arrives on a weekend, converts a defined structure into a stock position, and requires cash you may have allocated elsewhere.

The premium is the highest per dollar of spot on this list and the honest reason is that the risk does not stop when the closing bell rings. Bitcoin trades all weekend; Coinbase options do not. A short strike that was two standard deviations away on Friday afternoon can be through the money before Monday's open with no opportunity to manage in between. Defined risk is not a preference here, it is the only responsible construction.

COIN's Aug 28 strikes are $2.5 apart near the money (1.71% of spot). Coarse enough that the strike you want frequently does not exist, and the nearest rung is a different trade. 5.5k contracts of open interest on Aug 28 is thin, and a structure that needs four separate fills will pay for it. 27 strikes on that expiry — 33% of the board — carry prints that agree with their own implied volatility and hold up across the ladder, and those are the strikes priced here. Workable around the money, genuinely thin in the wings. Price your condor width against the open interest, not the ladder.

Skew is inverted: the 25-delta CALL implies 1.7% more vol than the put. That is the market pricing upside risk above downside risk — a squeeze, a takeover rumour, or a crowded short. Selling calls into an inverted skew pays better than usual and is riskier than usual for exactly the same reason. The term structure is flat inside 1.5% between the two captured expiries, so there is no calendar edge to harvest and no event visibly priced into one month over the other.

At 73% ATM implied vol, the Aug 28 options are pricing a one-standard-deviation move of $28.93 over 27 days — roughly −19.8% to +19.8%, or $117.33 to $175.19. The structure above sells the part of that distribution the market thinks it will not reach. Whether that is a good trade is entirely a question of whether 19.8% is too much or too little for COIN over 27 days — the delta table cannot answer that, and neither can we.

What actually goes wrong here, as opposed to in general: Weekend gap risk. Every other name on this list stops moving at the close on Friday; the asset behind this one does not.