MXI Iron Condor Strategy
MXI (iShares Global Materials ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The iShares Global Materials ETF seeks to track the investment results of an index composed of global equities in the materials sector.
MXI (iShares Global Materials ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $250.3M, a beta of 0.98 versus the broader market, a 52-week range of 82.49-116.61, average daily share volume of 36K, a public-listing history dating back to 2006. These structural characteristics shape how MXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places MXI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a iron condor on MXI?
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 MXI snapshot
As of May 15, 2026, spot at $109.63, ATM IV 26.40%, IV rank 21.71%, expected move 7.57%. The iron condor on MXI 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 MXI specifically: MXI IV at 26.40% is on the cheap side of its 1-year range, which means a premium-selling MXI iron condor collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.57% (roughly $8.30 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 MXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MXI should anchor to the underlying notional of $109.63 per share and to the trader's directional view on MXI etf.
MXI iron condor setup
The MXI 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 MXI near $109.63, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MXI 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 MXI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Call | $115.00 | $1.53 |
| Buy 1 | Call | $120.00 | $0.55 |
| Sell 1 | Put | $105.00 | $2.43 |
| Buy 1 | Put | $99.00 | $0.78 |
MXI iron condor risk and reward
- Net Premium / Debit
- +$262.00
- Max Profit (per contract)
- $262.00
- Max Loss (per contract)
- -$338.00
- Breakeven(s)
- $102.38, $117.62
- Risk / Reward Ratio
- 0.775
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.
MXI iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor on MXI. 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% | -$338.00 |
| $24.25 | -77.9% | -$338.00 |
| $48.49 | -55.8% | -$338.00 |
| $72.73 | -33.7% | -$338.00 |
| $96.96 | -11.6% | -$338.00 |
| $121.20 | +10.6% | -$238.00 |
| $145.44 | +32.7% | -$238.00 |
| $169.68 | +54.8% | -$238.00 |
| $193.92 | +76.9% | -$238.00 |
| $218.16 | +99.0% | -$238.00 |
When traders use iron condor on MXI
Iron condors on MXI are a delta-neutral premium-collection structure that profits if MXI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
MXI thesis for this iron condor
The market-implied 1-standard-deviation range for MXI extends from approximately $101.33 on the downside to $117.93 on the upside. A MXI iron condor is a delta-neutral premium-collection structure that pays off when MXI 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 MXI IV rank near 21.71% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on MXI at 26.40%. As a Financial Services name, MXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MXI-specific events.
MXI 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. MXI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MXI alongside the broader basket even when MXI-specific fundamentals are unchanged. Short-premium structures like a iron condor on MXI carry tail risk when realized volatility exceeds the implied move; review historical MXI earnings reactions and macro stress periods before sizing. Always rebuild the position from current MXI chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on MXI?
- A iron condor on MXI is the iron condor strategy applied to MXI (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 MXI etf trading near $109.63, the strikes shown on this page are snapped to the nearest listed MXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MXI 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 MXI iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 26.40%), the computed maximum profit is $262.00 per contract and the computed maximum loss is -$338.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MXI iron condor?
- The breakeven for the MXI iron condor priced on this page is roughly $102.38 and $117.62 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 MXI market-implied 1-standard-deviation expected move is approximately 7.57%; 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 MXI?
- Iron condors on MXI are a delta-neutral premium-collection structure that profits if MXI etf stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current MXI implied volatility affect this iron condor?
- MXI ATM IV is at 26.40% with IV rank near 21.71%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.