PLTR iron condor, priced on the real chain

Four legs, one idea: you are selling the market's estimate of how far PLTR can travel. The short strikes ($105 / $150) define the range you're renting out; the long wings ($100 / $155) cap what a violent move can cost you.

Both spreads cannot lose. PLTR 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, $351, not double it. Max profit is the $149 credit, earned by doing nothing.

Breakevens land at $103.51 and $151.49. Outside that band the position loses; between it, it wins. That band is 39.0% wide relative to spot, against 70% implied vol over 27 days.

Return on risk is $149 against $351 — roughly 42% if it works. You need a high hit rate to justify that ratio, which is exactly what the 68% probability is telling you.

The risk shape is a plateau with two cliffs. Anywhere between $103.51 and $151.49 you make money; past the long wings you lose a fixed $351. Between short and long strike the P/L slides linearly — that is where most condors are actually managed, not at expiry.

Assignment risk is real on the short legs, especially the calls near ex-dividend, and especially in the last week. Being assigned on one leg of a four-leg structure leaves you with a stock position and a broken condor over a weekend.

Liquidity is a risk, not a convenience. The moment you most want out of a short-premium position is the moment the spread is widest, and the exit price you modelled at mid will not be available.

The most-wheeled name in the retail options world, and the numbers explain why: a share price that makes 100 shares affordable, an implied vol in the 50s, and weeklies deep enough to roll. What the yield tables leave out is that the same vol that pays the premium has produced drawdowns that leave wheelers holding an assigned lot far above the market for months. The wheel works here — it just needs a basis you can defend and a plan for the quarter you spend underwater.

PLTR's Aug 28 strikes are $1 apart near the money (0.81% of spot). Enough rungs to express a view, few enough that each one moves the economics visibly. 30k contracts of open interest on Aug 28 is workable around the money and thin in the wings — width costs more here than the ladder suggests. 49 strikes on that expiry — 50% 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. Retail-deep with a fine strike ladder and real weekly open interest; one of the few high-vol names where four legs fill cleanly.

Skew is inverted: the 25-delta CALL implies 2.5% 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 backwardated — Aug 28 implies 8.3% MORE vol than the following month. That is the signature of a dated event inside the front month, and it is the strongest argument for picking the expiry that sits behind it.

At 70% ATM implied vol, the Aug 28 options are pricing a one-standard-deviation move of $23.41 over 27 days — roughly −19.0% to +19.0%, or $99.65 to $146.47. Everything the iron condor above collects is rent on that range. If PLTR routinely covers 19.0% in 27 days, the credit is fair compensation rather than edge.

The mistake this name punishes hardest: Running the wheel on a position size that assumes assignment is unlikely. On this name assignment is the plan, and the drawdown after it is the part people are unprepared for.