CUT Iron Condor Strategy
CUT (Invesco MSCI Global Timber ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The Invesco MSCI Global Timber ETF (Fund) is based on the MSCI ACWI IMI Timber Select Capped Index (Index). The Fund will invest at least 90% of its total assets in stock, American depositary receipts (ADRs), global depositary receipts (GDRs) and depositary receipts that comprise the Index. The Index measures the performance of securities engaged in the ownership and management of forests, timberlands and production of products using timber as raw materials. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are rebalanced quarterly.
CUT (Invesco MSCI Global Timber ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $30.0M, a beta of 0.78 versus the broader market, a 52-week range of 26.99-32.95, average daily share volume of 4K, a public-listing history dating back to 2007. These structural characteristics shape how CUT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places CUT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CUT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on CUT?
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 CUT snapshot
As of May 15, 2026, spot at $26.84, ATM IV 99.40%, IV rank 44.22%, expected move 28.50%. The iron condor on CUT 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 34-day expiry.
Why this iron condor structure on CUT specifically: CUT IV at 99.40% is mid-range versus its 1-year history, so the credit collected on a CUT iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 28.50% (roughly $7.65 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CUT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CUT should anchor to the underlying notional of $26.84 per share and to the trader's directional view on CUT etf.
CUT iron condor setup
The CUT 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 CUT near $26.84, the first option leg uses a $28.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CUT chain at a 34-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 CUT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $28.18 | N/A |
| Buy 1 | Call | $29.52 | N/A |
| Sell 1 | Put | $25.50 | N/A |
| Buy 1 | Put | $24.16 | N/A |
CUT iron condor risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
CUT iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on CUT. 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.
When traders use iron condor on CUT
Iron condors on CUT are a delta-neutral premium-collection structure that profits if CUT etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
CUT thesis for this iron condor
The market-implied 1-standard-deviation range for CUT extends from approximately $19.19 on the downside to $34.49 on the upside. A CUT iron condor is a delta-neutral premium-collection structure that pays off when CUT 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 CUT IV rank near 44.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on CUT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CUT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CUT-specific events.
CUT 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. CUT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CUT alongside the broader basket even when CUT-specific fundamentals are unchanged. Short-premium structures like a iron condor on CUT carry tail risk when realized volatility exceeds the implied move; review historical CUT earnings reactions and macro stress periods before sizing. Always rebuild the position from current CUT chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on CUT?
- A iron condor on CUT is the iron condor strategy applied to CUT (etf). 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 CUT etf trading near $26.84, the strikes shown on this page are snapped to the nearest listed CUT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CUT 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 CUT iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 99.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CUT iron condor?
- The breakeven for the CUT iron condor priced on this page is no defined breakeven on the modeled curve 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 CUT market-implied 1-standard-deviation expected move is approximately 28.50%; 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 CUT?
- Iron condors on CUT are a delta-neutral premium-collection structure that profits if CUT etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current CUT implied volatility affect this iron condor?
- CUT ATM IV is at 99.40% with IV rank near 44.22%, 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.