IQM Iron Condor Strategy
IQM (Franklin Intelligent Machines ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund seeks capital appreciation by investing in equity securities inside and outside of the United States, including developing or emerging markets. The fund invests in companies that are relevant to its investment theme of intelligent machines that the investment manager believes are substantially focused on/or are expected to substantially benefit from the ongoing technology-driven transformation of products, software, systems and machinery as well as product design, manufacture, logistics, distribution and maintenance, including through developments in artificial intelligence.
IQM (Franklin Intelligent Machines ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $67.2M, a beta of 1.59 versus the broader market, a 52-week range of 67.19-115.19, average daily share volume of 8K, a public-listing history dating back to 2020. These structural characteristics shape how IQM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.59 indicates IQM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a iron condor on IQM?
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 IQM snapshot
As of May 15, 2026, spot at $112.86, ATM IV 30.90%, IV rank 53.51%, expected move 8.86%. The iron condor on IQM 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 IQM specifically: IQM IV at 30.90% is mid-range versus its 1-year history, so the credit collected on a IQM iron condor sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.86% (roughly $10.00 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 IQM expiries trade a higher absolute premium for lower per-day decay. Position sizing on IQM should anchor to the underlying notional of $112.86 per share and to the trader's directional view on IQM etf.
IQM iron condor setup
The IQM 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 IQM near $112.86, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IQM 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 IQM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $120.00 | $1.95 |
| Buy 1 | Call | $125.00 | $0.80 |
| Sell 1 | Put | $107.00 | $1.70 |
| Buy 1 | Put | $102.00 | $0.72 |
IQM iron condor risk and reward
- Net Premium / Debit
- +$213.00
- Max Profit (per contract)
- $213.00
- Max Loss (per contract)
- -$287.00
- Breakeven(s)
- $104.87, $122.13
- Risk / Reward Ratio
- 0.742
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.
IQM iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on IQM. 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% | -$287.00 |
| $24.96 | -77.9% | -$287.00 |
| $49.92 | -55.8% | -$287.00 |
| $74.87 | -33.7% | -$287.00 |
| $99.82 | -11.6% | -$287.00 |
| $124.77 | +10.6% | -$264.43 |
| $149.73 | +32.7% | -$287.00 |
| $174.68 | +54.8% | -$287.00 |
| $199.63 | +76.9% | -$287.00 |
| $224.59 | +99.0% | -$287.00 |
When traders use iron condor on IQM
Iron condors on IQM are a delta-neutral premium-collection structure that profits if IQM etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
IQM thesis for this iron condor
The market-implied 1-standard-deviation range for IQM extends from approximately $102.86 on the downside to $122.86 on the upside. A IQM iron condor is a delta-neutral premium-collection structure that pays off when IQM 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 IQM IV rank near 53.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor thesis on IQM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, IQM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IQM-specific events.
IQM 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. IQM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IQM alongside the broader basket even when IQM-specific fundamentals are unchanged. Short-premium structures like a iron condor on IQM carry tail risk when realized volatility exceeds the implied move; review historical IQM earnings reactions and macro stress periods before sizing. Always rebuild the position from current IQM chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on IQM?
- A iron condor on IQM is the iron condor strategy applied to IQM (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 IQM etf trading near $112.86, the strikes shown on this page are snapped to the nearest listed IQM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IQM 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 IQM iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 30.90%), the computed maximum profit is $213.00 per contract and the computed maximum loss is -$287.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IQM iron condor?
- The breakeven for the IQM iron condor priced on this page is roughly $104.87 and $122.13 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 IQM market-implied 1-standard-deviation expected move is approximately 8.86%; 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 IQM?
- Iron condors on IQM are a delta-neutral premium-collection structure that profits if IQM etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current IQM implied volatility affect this iron condor?
- IQM ATM IV is at 30.90% with IV rank near 53.51%, 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.